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<strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong><br />

An Authoritative Guide to Managing Crises in <strong>Tourism</strong><br />

DECEMBER 2006<br />

A Report Prepared By:<br />

APEC International Centre for<br />

<strong>Sustainable</strong> <strong>Tourism</strong> (AICST)<br />

Doone Robertson, Ian Kean, Stewart Moore<br />

In partnership with:


This report is an initiative of the APEC International Centre for <strong>Sustainable</strong> <strong>Tourism</strong> (AICST). It is based on an<br />

earlier report entitled “<strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> in the Asia Pacific Region – An Authoritative Guide to<br />

Managing Crises and Disasters” published in 2004.<br />

The major partner in the project is the United Nations World <strong>Tourism</strong> Organization (UNWTO). The Pacific Asia<br />

Travel Association (PATA) is also a project partner.<br />

Production Team<br />

The research, editorial and production team was led by <strong>Sustainable</strong> <strong>Tourism</strong> Services.<br />

The principal writer was Doone Robertson, an experienced emergency management consultant and the<br />

Director of Studies at the Australian School of Emergency <strong>Management</strong>.<br />

Other writers and researchers who assisted with this report are:<br />

• Ian Kean, Executive Director of AICST, Australia<br />

• Stewart Moore, Managing Director of <strong>Sustainable</strong> <strong>Tourism</strong> Services, Australia<br />

• Yetta Gurtner, PhD Research Student from the Centre for Disaster Studies at James Cook University, in<br />

Australia<br />

• Cara Holcombe, Project Manager at <strong>Sustainable</strong> <strong>Tourism</strong> Services, Australia<br />

• Dr Jeff Wilks, Centre for <strong>Tourism</strong> and <strong>Risk</strong> <strong>Management</strong> at University of Queensland, Australia<br />

Use of the report and its contents<br />

The report is intended to be freely used by governments and the tourism industry throughout the Asia-Pacific<br />

region and beyond. It must not be used for commercial gain. The report and its contents must be used as<br />

presented and cannot be amended in any way without the written permission of AICST, which holds a<br />

worldwide license for the report and its contents from the Australian Government.<br />

Acknowledgements<br />

Australian Government - This project was principally funded by the Australian Department of Industry, <strong>Tourism</strong><br />

& Resources as an AusAID APEC Support Program project. All intellectual property developed by this project<br />

belongs to the Australian Government.<br />

Cover photography acknowledgements:<br />

Jim Holmes courtesy of Oxfam, ABC Library Sales and Journal Sentinel <strong>Online</strong><br />

Published by<br />

Asia-Pacific Economic Cooperation (APEC)<br />

APEC Secretariat<br />

35 Heng Mui Keng Terrace, Singapore 119616<br />

Telephone Number: (65) 6775 6012<br />

Facsimile Number: (65) 6775 6013<br />

Website: www.apec.org<br />

APEC #206-TO-03.1<br />

ISBN981-05-6732-4<br />

General Disclaimer<br />

This report mentions the activities and experiences of a number of organizations and individuals. These<br />

activities and names are given for record and as examples, but do not entail automatic endorsement by AICST<br />

or its project partners. While all care has been taken to check and validate material presented in this report,<br />

independent professional and/or legal advice should be sought before any action or decision is taken on the<br />

basis of material contained in this report. The contents of this report do not reflect the views of the Australian<br />

Government and should not be relied upon as reflecting Australian Government views. The Australian<br />

Government shall not be liable, in any way, for any loss arising from use or reliance upon material in this<br />

publication by another person.<br />

<strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> – An Authoritative Guide to Managing Crises in <strong>Tourism</strong><br />

i


Foreword<br />

The world travel and tourism industry only recently began to return to pre year 2000 levels of growth<br />

and stability following the series of tragic events which shook the foundations of the industry.<br />

This second APEC report provides an essential guide on the processes associated with developing a<br />

risk management strategy for a tourism destination or business and how to implement and maintain<br />

these plans over time. Most importantly the guide provides a practical framework from which both<br />

businesses and destinations can apply crisis management strategies for prevention, preparedness,<br />

response and recovery.<br />

The workshop training packages which accompany this guide have been designed to provide a<br />

platform to stimulate open information exchange and learning.<br />

A central lesson in all the case study material contained in this guide is that, in times of crisis,<br />

residents and visitors need firm leadership and direction. Adequate planning for what has in the past<br />

been seen as the ‘unexpected’ can be the difference between a well-managed problem and a social<br />

and economic disaster. Through working with existing disaster management bodies, government<br />

agencies and key tourism stakeholders the tourism industry can learn to address risk management<br />

issues and reduce the impact of crises and disasters on the growth and viability of this important<br />

industry.<br />

Developing effective relationships with the media and sharing information in a transparent way are<br />

critical issues. A full chapter of this report is dedicated to media and information management; so<br />

important are they in an age of almost instantaneous communication.<br />

We look forward to working with our key partners in taking forward the recommendations and<br />

guidelines contained within the workshop manuals and this guide.<br />

Sir Frank Moore AO<br />

Chair<br />

APEC International Centre for <strong>Sustainable</strong> <strong>Tourism</strong> (AICST)<br />

ii<br />

<strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> – An Authoritative Guide to Managing Crises in <strong>Tourism</strong>


CONTENTS<br />

PREFACE........................................................................................................................................ VI<br />

INTRODUCTION ...............................................................................................................................1<br />

CHAPTER 1: PROTECTING TOURISM ...........................................................................................4<br />

Aim of this Chapter.........................................................................................................................4<br />

Profile of <strong>Tourism</strong> Worldwide .........................................................................................................4<br />

Profile of the Asia-Pacific Region...................................................................................................5<br />

The Importance of <strong>Tourism</strong> ............................................................................................................6<br />

<strong>Tourism</strong> Industry Contribution to World and APEC Economies .....................................................7<br />

Recent <strong>Tourism</strong> Performance Worldwide ......................................................................................9<br />

Chapter Summary ..................................................................................................................13<br />

References...................................................................................................................................14<br />

CHAPTER 2: RISK MANAGEMENT FOR TOURISM CRISES AND DISASTERS........................16<br />

Aim of this Chapter.......................................................................................................................16<br />

Introduction ..................................................................................................................................16<br />

Disasters and <strong>Tourism</strong> .................................................................................................................17<br />

Crisis <strong>Management</strong> ......................................................................................................................17<br />

The Role of the <strong>Tourism</strong> Industry in <strong>Risk</strong> <strong>Management</strong> ...............................................................17<br />

Hazards (Sources of <strong>Risk</strong>) ...........................................................................................................19<br />

The Nature of Disasters ...............................................................................................................21<br />

The Toll from Disasters in 2005 ...................................................................................................23<br />

The <strong>Risk</strong> <strong>Management</strong> Standard .................................................................................................23<br />

Adapting the <strong>Risk</strong> <strong>Management</strong> Standard to Disaster/Emergency <strong>Risk</strong> <strong>Management</strong> ................23<br />

The Role of the <strong>Tourism</strong> Industry in <strong>Risk</strong> <strong>Management</strong> and Disaster <strong>Risk</strong> <strong>Management</strong>............24<br />

The <strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> Process .....................................................................................24<br />

1. COMMUNICATE AND CONSULT ...........................................................................................25<br />

2. MONITOR AND REVIEW ........................................................................................................26<br />

STEP 1 – Establish the Context...........................................................................................26<br />

STEP 2 – Identify <strong>Risk</strong>s .......................................................................................................27<br />

STEP 3 – Analyse <strong>Risk</strong>s ......................................................................................................28<br />

STEP 4 – Evaluate <strong>Risk</strong>s.....................................................................................................30<br />

STEP 5 – Treat <strong>Risk</strong>s ..........................................................................................................30<br />

Residual risk.................................................................................................................................32<br />

Chapter Summary ...................................................................................................................32<br />

References...................................................................................................................................35<br />

CHAPTER 3: NATIONAL RESPONSIBILITIES FOR RISK AND DISASTER MANAGEMENT ...36<br />

Aim of this Chapter.......................................................................................................................36<br />

<strong>Risk</strong> <strong>Management</strong> at the National Level ......................................................................................36<br />

Coordination and Partnerships – A National <strong>Tourism</strong> Council .....................................................36<br />

A National <strong>Tourism</strong> Safety and Security Plan ..............................................................................38<br />

A National <strong>Tourism</strong> Incident Response Plan................................................................................38<br />

Business Continuity Planning Guide for a Human Influenza Pandemic.......................................39<br />

Counter-Terrorism and Consequence <strong>Management</strong>....................................................................41<br />

Preventing Organized Crime........................................................................................................44<br />

<strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> – An Authoritative Guide to Managing Crises in <strong>Tourism</strong><br />

iii


<strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> in the Pacific Region ........................................................................45<br />

Disasters in Asia and the Pacific..................................................................................................46<br />

National Disaster <strong>Management</strong> Arrangements in Asia and the Pacific........................................47<br />

The Asian Disaster Preparedness Centre....................................................................................48<br />

<strong>Tourism</strong> Disaster Response Network...........................................................................................49<br />

Chapter Summary ...................................................................................................................49<br />

References...................................................................................................................................49<br />

CHAPTER 4: CRISIS MANAGEMENT FOR TOURISM OPERATORS AND DESTINATIONS.....51<br />

Aim of this Chapter.......................................................................................................................51<br />

Introduction ..................................................................................................................................51<br />

The Four Crisis <strong>Management</strong> Strategies .....................................................................................52<br />

1. Prevention/Mitigation................................................................................................................52<br />

Occupational Health and Safety...........................................................................................52<br />

2. Preparedness...........................................................................................................................53<br />

The Planning Committee......................................................................................................54<br />

<strong>Tourism</strong> Crisis <strong>Management</strong> Planning .................................................................................54<br />

Criteria for Crisis Control Personnel.....................................................................................55<br />

Training of Staff....................................................................................................................56<br />

Testing Plans and Personnel – Crisis <strong>Management</strong> Exercises (Mock Crises) ....................56<br />

Exercise Options..................................................................................................................56<br />

The <strong>Tourism</strong> Crisis Planning Process..................................................................................57<br />

3. Response .................................................................................................................................59<br />

The <strong>Tourism</strong> Crisis <strong>Management</strong> Centre .............................................................................61<br />

Crisis Information <strong>Management</strong> ...........................................................................................62<br />

<strong>Tourism</strong> Business Continuity................................................................................................63<br />

4. Recovery ..................................................................................................................................63<br />

Recovery Processes ............................................................................................................64<br />

Debriefing Processes...........................................................................................................64<br />

Aide-Memoir for Crisis Debriefing ........................................................................................65<br />

Chapter Summary ...................................................................................................................67<br />

References...................................................................................................................................67<br />

Checklist for Prevention...................................................................................................68<br />

Checklist for Preparedness .............................................................................................69<br />

Checklist for Response....................................................................................................70<br />

Checklist for Recovery.....................................................................................................71<br />

CHAPTER 5: MEDIA AND COMMUNICATION..............................................................................72<br />

Aim of This Chapter .....................................................................................................................72<br />

Introduction ..................................................................................................................................72<br />

Patterns of Media Reporting ........................................................................................................72<br />

Managing the Media.....................................................................................................................73<br />

Guidelines for the Visitor Industry ................................................................................................73<br />

I. Before a Crisis: Preparing for the Worst ........................................................................73<br />

II. Minimizing Damage..................................................................................................76<br />

III. Recovering Visitor Confidence.................................................................................79<br />

References...................................................................................................................................86<br />

APPENDIX A: GLOSSARY OF TERMS.........................................................................................87<br />

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<strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> – An Authoritative Guide to Managing Crises in <strong>Tourism</strong>


LIST OF TABLES<br />

Table 1: World Travel and <strong>Tourism</strong> (T&T) Estimated Forecasts........................................................4<br />

Table 2: Forecast Inbound <strong>Tourism</strong>, World by Regions.....................................................................5<br />

Table 3: Economic Indicators of the APEC Members........................................................................6<br />

Table 4: International Inbound Arrivals and Growth for 2005 to 2006 .............................................13<br />

LIST OF FIGURES<br />

Figure 1: <strong>Tourism</strong> 2020 Vision Forecasts ..........................................................................................5<br />

Figure 2: The Contribution of the Travel and <strong>Tourism</strong> Sector to APEC Economies’ GDP (Percent of<br />

Total GDP).........................................................................................................................................8<br />

Figure 3: Comparison of Receipts and Arrivals ................................................................................9<br />

Figure 4: World Inbound <strong>Tourism</strong> 1995-2005 ....................................................................................9<br />

Figure 5: International <strong>Tourism</strong> Arrivals to Phuket...........................................................................10<br />

Figure 6: International Tourist Arrivals by Country of Destination 2003...........................................11<br />

Figure 7: Tourist Arrivals and Receipts in Asia and the Pacific .......................................................12<br />

Figure 8: <strong>Risk</strong> <strong>Management</strong> Process...............................................................................................25<br />

Figure 9: Example threat level: US Department of Homeland Security...........................................42<br />

LIST OF CASE STUDIES<br />

Chapter 1<br />

The Economic Impact of SARS in Malaysia<br />

Chapter 2<br />

New Orleans and the Lessons of Hurricane Katrina<br />

The South Asia Tsunami and Recovery of <strong>Tourism</strong> in the Andaman<br />

Chapter 3<br />

Visitor Safety and Security: The South African Experience<br />

PATA and Project Phoenix<br />

Bali and Terrorism: Learning from the Past<br />

<strong>Tourism</strong> and Child Protection<br />

Transport Incidents<br />

Chapter 4<br />

Proactive Planning: An Example of Best Practice<br />

Crisis <strong>Management</strong> in <strong>Tourism</strong> in the Tropical North Queensland in 2000<br />

Phuket <strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> Strategy<br />

Chapter 5<br />

UNWTO Crisis Action Team<br />

Philippine Rebel<br />

Charters for Safe Travel<br />

<strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> – An Authoritative Guide to Managing Crises in <strong>Tourism</strong><br />

v


PREFACE<br />

Message of the Secretary-General of the World <strong>Tourism</strong> Organization, Francesco Frangialli<br />

On behalf of the World <strong>Tourism</strong> Organization (UNWTO), I take this opportunity to congratulate the<br />

APEC International Centre for <strong>Sustainable</strong> <strong>Tourism</strong> (AICST) and the Australian Government on their<br />

undertaking of the <strong>Risk</strong> <strong>Management</strong> Project with an update of the earlier initiative of “<strong>Tourism</strong> <strong>Risk</strong><br />

<strong>Management</strong> for the Asia-Pacific Region” published in 2004, by incorporating amongst others, the<br />

findings from the tsunami of 2004 and Hurricane Rita.<br />

It is indeed pleasing to note that this report is being published in Indonesian, Thai, Chinese, and<br />

Vietnamese languages in addition to the English version. UNWTO will add a Spanish version to this<br />

collection in the near future. It is also commendable that AICST has developed risk management<br />

training modules including trainer’s guides that will further help the project.<br />

UNWTO hopes that this initiative which is specific to Asia-Pacific will be a model for the rest of the<br />

world and that other regions will benefit from the experience and research of this project to develop<br />

their own systems, strategies and plans.<br />

The present collaboration of UNWTO and AICST is a direct outcome of the Phuket Action Plan where<br />

crisis management was recognized as one of the five major areas of development for post-tsunami<br />

tourism recovery.<br />

It is also noteworthy that UNWTO, having acquired significant experience in dealing with crises, both<br />

natural and man-made, has established a broader “<strong>Risk</strong> <strong>Management</strong> and Assessment Unit” at its<br />

headquarters so there could be a systematic sharing of facts in crisis management between Member<br />

States to which the AICST <strong>Risk</strong> <strong>Management</strong> Project will no doubt contribute in a significant manner.<br />

While extending my thanks to AICST I wish it all the success it so rightly deserves.<br />

Francesco Frangialli<br />

vi<br />

<strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> – An Authoritative Guide to Managing Crises in <strong>Tourism</strong>


INTRODUCTION<br />

The purpose of this guide is to provide tourism industry members in Asia, the Pacific and beyond with<br />

an authoritative guide to risk management. Importantly, the generic risk management process has<br />

been adapted to the specific needs of tourism. The guide provides a practical framework within which<br />

tourism destinations can identify, analyse, evaluate, treat, monitor and review risks in the tourism<br />

context. Although the tourism risk management process has been developed for destinations, the<br />

same principles also apply to a tourism business or organization and can easily be adapted for their<br />

purposes.<br />

Throughout this guide there are two fundamental roles for tourism in risk management: the first of<br />

these is as a partner with government and community agencies in the development of multi-agency,<br />

coordinated disaster management plans, systems, procedures and processes which include the<br />

needs of tourism; the second is to develop plans and procedures appropriate to a destination and to<br />

the specific roles and responsibilities of an organization, to train personnel to those plans, and to<br />

conduct regular tests of plans, procedures and personnel with subsequent amendment and update.<br />

Although the tourism industry is not responsible for the development or implementation of community<br />

disaster management plans and arrangements, the guide recommends that destinations and tourism<br />

operators should, when possible, participate in disaster planning and management activities through<br />

appropriate local, regional or national committees. Such participation enables the importance of<br />

tourism to be drawn to the attention of disaster management agencies and promotes the need for<br />

appropriate measures to be established to protect visitors in times of crisis. Case studies of<br />

Hurricane Katrina and the Bali Bombings demonstrate how a community disaster can affect<br />

confidence in tourism and interfere with its ability to continue normal operations.<br />

While each tourist destination is unique and will have different issues to deal with, there are key<br />

areas of risk management which are common across destinations. The most obvious is a dramatic<br />

drop in visitor numbers in which the impact is felt across a whole economy. While this guide presents<br />

case studies of recent events which have had a significant impact on tourism, the focus is on<br />

solutions rather than merely documenting past difficulties. The guide also provides checklists which<br />

will assist destinations and tourism businesses to adopt current risk management processes.<br />

This guide draws on best practice from a range of sources within and outside the APEC group.<br />

Current knowledge and practical application are the objectives of the project, so that peak bodies<br />

(UNWTO, PATA, etc) can use material from this report for training and education programs.<br />

Recognizing the critical role of national governments in supporting and protecting tourist destinations,<br />

the guide also seeks to offer an authoritative guide that can be endorsed by governments.<br />

Chapter Summaries<br />

In order to demonstrate the importance of tourism, Chapter 1 begins with an overview of the need to<br />

protect tourism, focusing particularly on the economic significance of the tourism industry to all<br />

economies. Selected case studies reinforce the value of tourism by showing the economic losses<br />

associated with adverse events.<br />

Having established the importance of tourism for generating income, creating and sustaining jobs,<br />

encouraging foreign investment and facilitating trade opportunities, Chapter 2 then considers the key<br />

elements of crises and disasters and their effects upon tourism businesses/organizations and<br />

destinations and identifies the role of the tourism industry in risk management. The chapter provides<br />

a practical framework within which tourism destinations and businesses/organizations can identify,<br />

analyse, evaluate, treat, monitor and review risks and identifies the critical role of tourism operators in<br />

<strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> – An Authoritative Guide to Managing Crises in <strong>Tourism</strong> 1


contributing to the development and implementation of multi-agency disaster management plans and<br />

systems.<br />

Chapter 3 identifies national governments’ responsibilities for the development, coordination and<br />

implementation of policies relating to risk and disaster management, and for establishing strategic<br />

directions for risk and disaster management processes. It identifies the need for national tourism<br />

councils and highlights the benefits of an effective partnership between government agencies and the<br />

tourism industry. Critical elements of a National <strong>Tourism</strong> Safety and Security Plan and a National<br />

<strong>Tourism</strong> Incident Response Plan are examined and the need for business continuity plans identified.<br />

Arrangements to prepare for and respond to a terrorism event are discussed, and an overview of<br />

national disaster management arrangements in Asia and the Pacific is provided.<br />

The crisis management strategies of prevention/mitigation, preparedness, response and recovery for<br />

tourism destinations are addressed in Chapter 4. It suggests the composition of and tasks for a crisis<br />

planning committee, identifies the key elements of a crisis response management plan, examines the<br />

training and exercising (testing) needs of a crisis management team, examines business continuity<br />

processes, and describes crisis recovery processes including debriefing. The chapter also highlights<br />

the need for tourism organizations and operators to work with relevant government agencies and<br />

community organizations to develop effective partnerships for crisis management.<br />

Chapter 5 examines the role of the media and general information exchange (including the role of<br />

Travel Advisories) in the management of tourism crisis situations. Having a separate chapter on<br />

media and information issues reinforces the importance of each in crisis and disaster management.<br />

Throughout this report the following symbols are used to assist the reader:<br />

Case Study: An example to illustrate a concept or activity.<br />

Checklist: A self-help tool to clarify points made in the text.<br />

Summary: Draws together points raised in the text.<br />

Definitions used in this guide<br />

In this guide, a risk represents a source of potential harm to an operator or a destination/community.<br />

<strong>Risk</strong> management is concerned with identifying and analysing the risks (the chance of something<br />

happening) to an organization or community and deciding what can or should be done to address<br />

these risks.<br />

<strong>Risk</strong> management in the tourism context refers to the planning and implementation of processes<br />

directed towards managing the adverse effects of crises and disasters on tourism. It also addresses<br />

tourism’s potential opportunities for the improvement in systems and procedures.<br />

While risk management is essentially about anticipating and minimizing risks, crisis occurs when an<br />

unforeseen or unavoidable event does occur. According to PATA (2003) a crisis is defined as:<br />

‘Any situation that has the potential to affect long-term confidence in an organization or a<br />

product, or which may interfere with its ability to continue operating normally’.<br />

The term crisis management applies to the means by which a tourism business/organization or<br />

destination prepares for, responds to and recovers from a crisis.<br />

The term disaster refers a serious disruption to a community which is of such magnitude that<br />

responding organizations, infrastructure and resources are overwhelmed and there is an inability to<br />

2 <strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> – An Authoritative Guide to Managing Crises in <strong>Tourism</strong>


eturn to normal without external assistance. Chapter 2 provides a detailed overview of disasters and<br />

how they relate to tourism.<br />

A complete Glossary of Terms can be found in Appendix A.<br />

<strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> – An Authoritative Guide to Managing Crises in <strong>Tourism</strong> 3


CHAPTER 1: PROTECTING TOURISM<br />

Aim of this Chapter<br />

<strong>Tourism</strong> has become one of the major generators for social and economic growth in the world and<br />

one of the leading drivers of international trade. In order to gain the support of key decision-makers in<br />

government and industry it is critical that the value and importance of tourism for each destination is<br />

clearly articulated. The aim of this chapter is to highlight the importance of tourism for generating<br />

income, creating and sustaining jobs, encouraging foreign investment and facilitating trade<br />

opportunities for each of the 21 APEC economies within the regional trading bloc and worldwide. It<br />

also emphasizes the impact of world events on national economies and the business of tourism<br />

everywhere. This chapter is intentionally directed at national, state/provincial and local government<br />

officials who may not be fully aware of the economic value of tourism to their destinations, yet whose<br />

support is crucial to destinations having resources in place to manage risks to tourism.<br />

Profile of <strong>Tourism</strong> Worldwide<br />

Travel and tourism - encompassing accommodation, transport, catering, recreation and visitor<br />

services - is one of the world’s highest priority industries and employers. In 2006 travel and tourism is<br />

expected to post US$6,477.2bn of economic activity (total demand) and is expected to directly<br />

contribute 3.6% (US$1,754.5bn) to Gross Domestic Product (GDP).<br />

The total direct and indirect economic contribution (percentage of total) of travel and tourism is<br />

estimated to rise from 10.3% (US$4,963.8bn) in 2006 to 10.9% (US$8,971.6bn) in 2016, and is<br />

expected to generate 234,305,000 jobs, 8.7% of total employment in 2006, rising to 279,347,000<br />

jobs, 9.0% of total employment, over the same time period.<br />

The following table provides a snapshot of the projected value of tourism to the world’s economy<br />

from 2006 to 2016:<br />

Table 1: World Travel and <strong>Tourism</strong> (T&T) Estimated Forecasts<br />

2006 2016<br />

World US$ bn % of Total Growth 1 US$ bn % of Total Growth 2<br />

Personal Travel and <strong>Tourism</strong> 2,845 9.5 3.7 4,916 9.8 3.4<br />

Business Travel 672 --- 5.9 1,190 --- 3.6<br />

Government Expenditures 300 3.8 2.2 481 4.0 2.6<br />

Capital Investment 1,011 9.3 4.9 2,060 9.6 4.6<br />

Visitor Exports 896 6.4 6.5 1,754 5.5 4.9<br />

Other Exports 750 5.4 5.0 1,715 5.4 6.5<br />

Travel and <strong>Tourism</strong> Demand 6,477 --- 4.6 12,119 --- 4.2<br />

T&T Industry GDP 1,754 3.6 4.4 2,969 3.6 3.2<br />

T&T Economy GDP 4,964 10.3 4.8 8,972 10.9 3.7<br />

T&T Industry Employment 76,728.7 2.8 3.4 89,484.5 2.9 1.6<br />

T&T Economy Employment 234,304.5 8.7 4.4 279,346.7 9.0 1.8<br />

(Source: World Travel and <strong>Tourism</strong> Council, 2006)<br />

1<br />

2006 Real Growth Adjusted for Inflation (%)<br />

2<br />

2007-2016 Annualized Real Growth Adjusted for Inflation (%): ‘000 of Jobs<br />

4 <strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> – An Authoritative Guide to Managing Crises in <strong>Tourism</strong>


The World <strong>Tourism</strong> Organization (2001) predicts that the number of international arrivals worldwide<br />

will increase from 565 million in 1995 to almost 1.6 billion by 2020 and receipts from international<br />

tourism (excluding transport) are projected to reach US$2 trillion.<br />

Figure 1: <strong>Tourism</strong> 2020 Vision Forecasts<br />

<strong>Tourism</strong> 2020 Vision - Forecasts<br />

2500<br />

2000<br />

1500<br />

1000<br />

500<br />

0<br />

565<br />

401<br />

International tourist arrivals<br />

(million)<br />

1561<br />

2000<br />

International tourism<br />

receipts (US$ billion)<br />

1995 2020<br />

Table 2 provides a breakdown of international arrivals, by region:<br />

Table 2: Forecast Inbound <strong>Tourism</strong>, World by Regions<br />

WTO <strong>Tourism</strong> 2020 Vision: Forecast of Inbound <strong>Tourism</strong>, World by Regions<br />

International Tourist Arrivals by Tourist Receiving Region (million)<br />

Base Forecasts Average Market Share %<br />

Year<br />

Annual<br />

Growth<br />

Rate<br />

1995 2010 2020 1995-2020 1995 2020<br />

Total 565.4 1,006 1,561 4.1 100 100<br />

Africa 20.2 47 77 5.5 3.6 5.0<br />

Americas 108.9 190 282 3.9 19.3 18.1<br />

East Asia/Pacific 81.4 195 397 6.5 14.4 25.4<br />

Europe 338.4 527 717 3.0 59.8 45.9<br />

Middle East 12.4 36 69 7.1 2.2 4.4<br />

South Asia 4.2 11 19 6.2 0.7 1.2<br />

Intraregional (a) 464.1 791 1,183 3.8 82.1 75.8<br />

Long-Haul (b) 101.3 216 378 5.4 17.9 24.2<br />

(Source: World <strong>Tourism</strong> Organization (WTO), 2001 - (Actual data as in WTO database, July 2000))<br />

These volumes represent an overall average annual rate of growth in the period 1995-2020 of 4.1%,<br />

with the only slackening of growth rate between 1995 and 2000 as a consequence of the Asian<br />

financial crisis (ie, 1995-2000 3.4% per year; 2000-2010 4.2% per year; 2010-2020 4.5% per year)<br />

(WTO, 2001).<br />

Profile of the Asia-Pacific Region<br />

The Asia-Pacific Economic Cooperation (APEC) has 21 members - referred to as "Member<br />

Economies" - which account for approximately 40% of the world's population, approximately 56% of<br />

world GDP and about 48% of world trade (APEC, 2006). APEC recognizes tourism as a major futureoriented<br />

service sector.<br />

<strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> – An Authoritative Guide to Managing Crises in <strong>Tourism</strong> 5


There is a broad range of economic performance and growth potential across the APEC economies.<br />

Table 3 provides an overview of current economic indicators for APEC members.<br />

Member Economy and Year<br />

Joined<br />

Table 3: Economic Indicators of the APEC Members<br />

Area<br />

('000 sq<br />

km)<br />

Population<br />

(million)<br />

GDP<br />

(US$bn)<br />

GDP per<br />

capita (US$)<br />

Exports<br />

(US$m)<br />

Imports<br />

(US$m)<br />

Australia (1989) 7,692 20.2 692.4 33,629 86,551 103,863<br />

Brunei Darussalam (1989) 6 0.4 5.7 15,764 4,713 1,638<br />

Canada (1989) 9,971 32.0 1,084.1 33,648 315,858 271,869<br />

Chile (1994) 757 15.4 105.8 6,807 32,548 24,769<br />

China (1991) 9,561 1,299.8 1,851.2 1,416 593,647 560,811<br />

Hong Kong, China (1991) 1 6.9 174.0 25,006 265,763 273,361<br />

Indonesia (1989) 1,905 223.8 280.9 1,237 71,585 46,525<br />

Japan (1989) 378 127.3 4,694.3 36,841 566,191 455,661<br />

Korea (1989) 99 48.2 819.2 16,897 253,845 224,463<br />

Malaysia (1989) 330 25.5 129.4 4,989 125,857 105,297<br />

Mexico (1993) 1,958 105.0 734.9 6,920 177,095 171,714<br />

New Zealand (1989) 271 4.1 108.7 26,373 20,334 21,716<br />

Papua New Guinea (1993) 463 5.9 3.5 585 4,321 1,463<br />

Peru (1998) 1,285 27.5 78.2 2,798 12,111 8,872<br />

The Philippines (1989) 300 86.2 95.6 1,088 39,588 40,297<br />

The Russian Federation (1998) 17,075 144.0 719.2 5,015 171,431 86,593<br />

Singapore (1989) 1 4.2 116.3 27,180 179,755 163,982<br />

Chinese Taipei (1991) 36 22.5 335.2 14,857 174,350 168,715<br />

Thailand (1989) 513 64.6 178.1 2,736 97,098 95,197<br />

The United States (1989) 9,364 293.0 12,365.9 41,815 818,775 1,469,704<br />

Viet Nam (1998) 332 82.6 51.0 610 26,061 32,734<br />

(Area; Population; Current price GDP; Current GDP Source: Economic Fact Sheets,<br />

http://www.dfat.gov.au/geo/fs. Exports and Imports<br />

Source: The APEC Region Trade and Investment, 2005)<br />

The Importance of <strong>Tourism</strong><br />

<strong>Tourism</strong> is one of the driving forces of economic development in industrialized, less-developed and<br />

developing countries. The travel and tourism industry contributes substantially to:<br />

• strong economic growth,<br />

• creation of skilled and semi-skilled jobs,<br />

• greater export returns,<br />

• foreign investments and currencies, and<br />

• economic well-being and social stability.<br />

Travel and tourism is one of the world’s largest industries and generators of jobs. The tourism<br />

industry is labour intensive and provides a wide range of employment opportunities, especially for<br />

women and young people, helping to break the vicious cycle of poverty by enhancing human capital<br />

6 <strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> – An Authoritative Guide to Managing Crises in <strong>Tourism</strong>


and creating new prospects for future generations. The jobs are spread across a wide range of<br />

industries and comprise a broad range of remuneration levels. The development of small and<br />

medium size enterprises creates work for unskilled and skilled workers in existing centres and rural<br />

areas. Visitors’ expenditure in a destination flows directly to industries that serve visitors and<br />

indirectly to the many other businesses that supply goods and services to these tourism businesses.<br />

In this way, the benefits from visitors’ expenditure flow right through local, regional, state/provincial<br />

and national economies and throughout communities.<br />

<strong>Tourism</strong> Industry Contribution to World and APEC Economies<br />

The rate of industry growth in the last few decades and the scale of tourist movements have not only<br />

created a major industry, they have created a massive logistical framework of transport networks,<br />

gateways, infrastructure, accommodation and services capable of moving large numbers with<br />

minimum delays and great efficiency.<br />

According to the World Travel and <strong>Tourism</strong> Council (WTTC), tourism and travel in the APEC region<br />

currently accounts for:<br />

• More than 100 million employed; by 2010 employment in travel and tourism in the APEC<br />

region will increase by more than 25% creating an additional 30 million new jobs;<br />

• Over US$2 trillion in travel and tourism-related demand; total tourism and travel demand in<br />

2010 is expected to exceed US$3 trillion;<br />

• Approximately US$400 billion in export earnings which will increase by almost 66% by 2010;<br />

and<br />

• One-quarter of world international visitor arrivals and more than one-third of global<br />

international visitor expenditure.<br />

Source: in APEC <strong>Tourism</strong> Working Group, 2006<br />

The influence of the tourism and travel sector on each country’s economy varies across the APEC<br />

nations (Figure 2). For example, in New Zealand tourism contributes 15% to GDP while in Chinese<br />

Taipei this sector accounts for just 4.1% of total GDP.<br />

<strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> – An Authoritative Guide to Managing Crises in <strong>Tourism</strong> 7


Figure 2: The Contribution of the Travel and <strong>Tourism</strong> Sector to APEC Economies’ GDP<br />

(Percent of Total GDP)<br />

Australia<br />

Brunei Darussalam<br />

Canada<br />

Chile<br />

China<br />

Hong Kong, China<br />

In don esia<br />

Japan<br />

T&T Econom y GDP<br />

T&T Industry GDP<br />

Korea, Republic of<br />

Malaysia<br />

Mexico<br />

New Zealand<br />

Papua New Guinea<br />

Peru<br />

Philippines<br />

Form er Soviet Union<br />

Singapore<br />

Chinese Taipei<br />

T hailand<br />

United States<br />

Vietnam<br />

0 2 4 6 8 10 12 14 16<br />

(Source: WTTC, 2002)<br />

Another economic indicator of the contribution of tourism to a country’s economy is receipt values,<br />

which indicate revenue gained from tourism. A country may have a higher receipt value than the<br />

number of arrivals, which indicates that the tourist market of that destination accumulates significant<br />

revenue from tourism. Ten members of the APEC economies (Australia, Chinese Taipei (Taiwan),<br />

Indonesia, New Zealand, Papua New Guinea, Peru, Philippines, Republic of Korea, Singapore and<br />

The United States) generate relatively higher receipts than number of arrivals (Figure 3). These<br />

economies generate about two-thirds of all receipts in the APEC region by attracting only one-third of<br />

tourist arrivals. This uneven distribution of receipts and arrivals illustrates why it is important to<br />

develop destinations in a manner which facilitates the accumulation of revenue from tourism.<br />

8 <strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> – An Authoritative Guide to Managing Crises in <strong>Tourism</strong>


Figure 3: Comparison of Receipts and Arrivals<br />

45.00<br />

40.00<br />

35.00<br />

% of total APEC region<br />

30.00<br />

25.00<br />

20.00<br />

15.00<br />

Receipts<br />

Arrivals<br />

10.00<br />

5.00<br />

0.00<br />

Australia<br />

Brunei Darussalam<br />

Canada<br />

Chile<br />

China<br />

Chinese Taipei (Taiwan)<br />

Hong Kong, China<br />

Indonesia<br />

Japan<br />

Malaysia<br />

Mexico<br />

New Zealand<br />

Papua New Guinea<br />

Peru<br />

Philippines<br />

Republic of Korea<br />

Russian Federation<br />

Singapore<br />

Thailand<br />

United States<br />

Viet Nam<br />

(Source: Prepared by APEC)<br />

Recent <strong>Tourism</strong> Performance Worldwide<br />

The economic health of tourism is influenced by the same economic cycles which affect all countries<br />

across the world. Figure 4 represents total international inbound tourist arrivals for the period from<br />

1995 to 2005.<br />

Figure 4: World Inbound <strong>Tourism</strong> 1995-2005<br />

<strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> – An Authoritative Guide to Managing Crises in <strong>Tourism</strong> 9


As can been seen in the above graph, international tourism arrivals experienced steady growth from<br />

1995 to 2000. This growth halted in 2001 and did not pick up again until 2004. In this period the world<br />

tourism industry suffered some severe losses as a result of a series of major international events.<br />

Outlined below is a brief overview of selected major events which have collectively influenced the<br />

performance of the tourism industry in the region over the past five years.<br />

• September 11 terrorist attacks in the USA resulted in an economic downturn affecting all<br />

major economies simultaneously. This event triggered business and consumer uncertainty<br />

and shifts in demand. Falls in tourist arrivals in 2001 for the Asia-Pacific Region included a<br />

21% fall in Chinese Taipei and 10% in Singapore (APEC <strong>Tourism</strong> Working Group, 2001).<br />

While the region’s tourism industry began to experience a recovery in early 2002 this recovery<br />

was very gradual and patchy throughout the APEC region.<br />

• SARS virus outbreaks in 2003 had the effect of hampering economic growth following a<br />

heightened state of uncertainty across the region. This has been closely linked to the<br />

unexpected drop of 12 million arrivals (-9%) in the Asia-Pacific Region. According to the<br />

WTTC (2003), research shows a 15% loss of business in Viet Nam for 2003, 43% in<br />

Singapore, 41% in Hong Kong, China and 25% in China as a result of SARS. A total of 2.9<br />

million jobs were lost. As a result of these occurrences in 2003, international tourism arrivals<br />

fell 1.2% for that year, the biggest ever annual drop.<br />

• Indian Ocean Tsunami December 2004 caused devastating effects for some Asian Pacific<br />

countries and their tourism industries. This resulted in a dramatic drop in international<br />

visitation and hotel occupancy in affected countries. Figure 5 provides a snapshot of the<br />

impact of this event on international tourism arrivals to Phuket, Thailand.<br />

Figure 5: International <strong>Tourism</strong> Arrivals to Phuket<br />

(Source: UNWTO, 2005)<br />

While most economies in Asia and the Pacific reported a growth in tourist arrival rates in January and<br />

February of 2003, this trend abruptly ended after March 2003 with the emergence of SARS and the<br />

Iraq conflict. The impact of these two events on tourism in this region was widespread. For example<br />

economies such as Japan, Korea, Australia, Thailand, Indonesia and The Philippines, experienced a<br />

10 to 50 percent decline in tourist arrivals even though they were not directly affected by these<br />

events. These events highlighted the interdependency which exists between regions. For example,<br />

many countries depend on the major air travel hub of Singapore which was severely crippled by the<br />

SARS outbreak. Figure 6 provides an indication of the impact of these events on specific economies<br />

from 2002 to 2003.<br />

10 <strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> – An Authoritative Guide to Managing Crises in <strong>Tourism</strong>


25<br />

Figure 6: International Tourist Arrivals by Country of Destination 2003<br />

% change 2002/2001<br />

15<br />

5<br />

-5<br />

Australia China Hong Kong<br />

(China)<br />

Indonesia Japan Korea,<br />

Republic of<br />

Malaysia<br />

New<br />

Zealand<br />

Philippines<br />

Singapore Chinese<br />

Taipei<br />

Thailand<br />

-15<br />

2003 to date<br />

-25<br />

-35<br />

(Source: UNWTO, 2003)<br />

The following case study outlines the economic impact of SARS in Malaysia.<br />

The Economic Impact of SARS in Malaysia<br />

The first known case of Severe Acute Respiratory Syndrome (SARS) occurred in Foshan city,<br />

Guangdong Province, China on 16 November 2002. SARS is a severe and readily transmissible<br />

disease to emerge in the 21st century. Though much about the disease remains poorly understood,<br />

SARS showed a clear capacity to spread along the routes of international air travel. The outbreaks<br />

of greatest concern were concentrated in transportation hubs or spreading in densely populated<br />

areas. The World Health Organization (WHO) regarded every country with an international airport<br />

as at potential risk of an outbreak. There were 8,100 cases worldwide with 916 people dying from<br />

SARS.<br />

Despite the small number of reported cases and deaths, SARS had a major economic impact on<br />

the travel industry around the world. The economic consequences for Malaysia – with only five<br />

reported cases - were significant considering heavy reliance on intraregional trade and tourist<br />

arrivals from East Asia. Malaysia’s tourism industry, the second largest foreign exchange earner<br />

after manufacturing, was hit badly by SARS. <strong>Tourism</strong>, which contributed about 7.8% of GDP in<br />

2002, was affected significantly, as reflected in the increase in cancellations of travel and hotel<br />

bookings. According to the Malaysia National Economic Action Council, tourism arrivals dropped<br />

30% and hotel occupancy countrywide fell to 30 ~ 50% year on year, by the end of April 2003 (Asia<br />

Recovery Information Centre, 2003). During the same period, airline bookings were reportedly down<br />

by 40% (Asia Recovery Information Centre, 2003).<br />

On 21 May 2003, the Malaysian Government released an economic package to sustain economic<br />

growth under the title “New Strategies Towards Stimulating the Nation’s Economic Growth”. It<br />

<strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> – An Authoritative Guide to Managing Crises in <strong>Tourism</strong> 11


included 13 measures providing assistance to the economic sectors hardest hit by SARS, such as<br />

tourism and transport. These measures were part of a more comprehensive package for promoting<br />

private sector investment and international competitiveness and strengthening domestic demand.<br />

The package contained a federal budgetary allocation of RM7.3 billion (US$1.9 billion), or 2% of<br />

GDP, to stimulate the economy through public spending and reduced taxes.<br />

‘<strong>Tourism</strong> Promotion’ was focused on markets not hit by the SARS outbreak such as the West Asian<br />

nations. The six-day tourism campaign jointly organized by the Malaysia <strong>Tourism</strong> Promotion Board<br />

(<strong>Tourism</strong> Malaysia) and Malaysia Airlines, was aimed at potential travellers from Kuwait, Bahrain,<br />

Qatar and Oman (Husain, 2003). The Culture, Arts and <strong>Tourism</strong> Ministry allocated RM900 million<br />

(US$237 million) to revive the local tourism industry, which had been badly affected by the ongoing<br />

global crisis (The Culture, Arts and <strong>Tourism</strong> Ministry, 2003). According to the Ministry, RM400<br />

million (US$105 million) would be used for the Special <strong>Tourism</strong> Fund and RM500 million (US$132<br />

million) was used for the <strong>Tourism</strong> Infrastructure Fund.<br />

(Source: AICST, 2004: Based on materials provided from the University of Hawaii)<br />

The UNWTO (2005) reported that in 2004 tourism saw a full recovery in Asia and the Pacific. The<br />

region achieved growth of 28%, receiving an estimated volume of 153 million tourist arrivals.<br />

International tourist arrivals to North-East Asia grew by 30% with major SARS-affected destinations<br />

fully recovering the losses of 2003 in terms of both arrivals and tourism receipts. Figure 7 below<br />

shows a comparison of tourist arrivals and receipts in the Asia and Pacific Region for 2003 to 2004.<br />

Figure 7: Tourist Arrivals and Receipts in Asia and the Pacific<br />

(Source: UNWTO, 2005b)<br />

Years 2005 to 2006 have seen continuing growth for many Asian and Pacific countries. Indonesia<br />

has experienced a 10.2% decline in tourist arrivals which could be directly linked to terrorist<br />

bombings in October 2005 (see case study in Chapter 3). Table 4 (PATA, 2006) provides<br />

international inbound arrivals and growth for 33 countries in the Asia-Pacific region for 2005 to 2006:<br />

12 <strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> – An Authoritative Guide to Managing Crises in <strong>Tourism</strong>


Table 4: International Inbound Arrivals and Growth for 2005 to 2006<br />

Country/Destination Period Year % Change<br />

2005 2006<br />

Top tier: >10% growth year-on-year<br />

Maldives Jan-May 138,903 264,613 90.5<br />

Lao PDR Jan-Feb 158,859 221,743 39.6<br />

Thailand (Air arrivals at Don Muang Airport-BKK) Jan-Mar 1,981,656 2,564,229 29.4<br />

Sri Lanka Jan-Apr 167,511 209,312 25.0<br />

Cambodia Jan-Apr 504,889 600,374 18.9<br />

Macau SAR Jan-Mar 4,457,022 5,248,018 17.7<br />

Singapore Jan-Apr 2,728,388 3,128,055 14.6<br />

India Jan-Apr 1,403,234 1,605,773 14.4<br />

Philippines Jan-Apr 852,583 965,853 13.3<br />

Hong Kong SAR Jan-Apr 7,413,380 8,353,504 12.7<br />

Vietnam Jan-May 1,413,098 1,582,009 12.0<br />

Middle tier: >5%-10% growth<br />

Japan Jan-Apr 2,177,786 2,378,502 9.2<br />

Nepal Jan-May 92,865 100,151 7.8<br />

Chinese Taipei Jan-Mar 799,874 859,884 7.5<br />

Third tier: 0%-5% growth<br />

Malaysia Jan-Feb 2,740,582 2,838,282 3.6<br />

Cook Islands Jan-Apr 23,390 24,129 3.2<br />

Guam Jan-Apr 416,461 427,577 2.7<br />

Hawaii (Air) Jan-Apr 2,341,727 2,390,312 2.1<br />

China (PRC) Jan-Mar 28,216,763 28,732,813 1.8<br />

New Zealand Jan-Apr 908,861 921,599 1.4<br />

USA Jan-Mar 9,008,381 9,049,087 0.5<br />

Fourth tier: Negative growth<br />

Australia Jan-Apr 1,878,282 1,868,953 -0.5<br />

Korea (ROK) Jan-Apr 1,966,342 1,935,966 -1.5<br />

Tahiti Jan-Mar 46,860 45,146 -3.7<br />

Mexico Jan-Mar 5,795,420 5,520,610 -4.7<br />

Papua New Guinea Jan-Mar 16,557 15,754 -4.8<br />

New Caledonia Jan-Feb 15,954 14,916 -6.5<br />

Canada Jan-Mar 2,723,720 2,544,597 -6.6<br />

Indonesia (13 ports of entry) Jan-Apr 1,337,310 1,201,344 -10.2<br />

Palau Jan-Jan 8,581 7,050 -17.8<br />

Northern Marianas Jan-Apr 179,093 145,477 -18.8<br />

Marshall Islands Jan-Apr 2,068 1,422 -31.2<br />

Kiribati Jan-Mar 538 334 -37.9<br />

We need to ensure that the tourism industry is prepared as best it can be for future crises and<br />

disasters to minimize the negative impact on the tourism industry and maximize opportunities for<br />

tourism growth.<br />

Chapter Summary<br />

This chapter demonstrates the diversity of the APEC and world economies in terms of tourism<br />

performance and potential. Given that tourism is among the leading export sectors of goods and<br />

<strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> – An Authoritative Guide to Managing Crises in <strong>Tourism</strong> 13


services in each economy, it is essential that the right conditions exist to support the future growth of<br />

this sector.<br />

The value and importance of tourism was illustrated through facts and figures on how tourism<br />

generates income, creates and sustains jobs, encourages foreign investment and facilitates trade<br />

opportunities. Drawing attention to tourism’s substantial economic contribution is important in order to<br />

gain the support of key government decision makers, who in turn will help ensure the industry is<br />

protected from various threats. These potential threats are discussed in the following chapter.<br />

Although recent years have been difficult for many of the world’s economies, the long-term outlook in<br />

travel and tourism is positive. One of the lessons from the past three years is that some destinations<br />

were much better prepared than others to respond and adapt quickly to possible shocks and threats<br />

to the tourism industry. The intention of this report is to show how all tourism destinations can be<br />

better prepared to manage risks to tourism in the future.<br />

Chapter 2 now considers the key elements of disasters and their effects upon communities and offers<br />

a practical framework for working through the risk management process.<br />

References<br />

APEC International Centre for <strong>Sustainable</strong> <strong>Tourism</strong> (AICST) 2004, ‘<strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> in the<br />

Asia Pacific Region’, APEC<br />

APEC 2006, ‘About APEC’, [online] http://www.apec.org/content/apec/about_apec.html, accessed 23<br />

August 2006<br />

APEC 2005, ‘The APEC Region Trade and Investment’, Department of Foreign Affairs and Trade<br />

Australia, [online] www.dfat.gov.au/publications/stats-pubs/APEC-2005-analysis.pdf, accessed 23<br />

August 2006<br />

APEC <strong>Tourism</strong> Working Group 2006, ‘<strong>Tourism</strong> Working Group’, [online]<br />

http://www.apecsec.org.sg/apec/apec_groups/working_groups/tourism.html, accessed 15 September<br />

2006<br />

APEC <strong>Tourism</strong> Working Group 2001, ‘Statement on the Impact of <strong>Tourism</strong> of the September 11<br />

Terrorist Attacks in the United States’, APEC<br />

Asia Recovery Information Centre 2003, ‘Malaysia: Rapid Country Assessment of the Impact of<br />

SARS’. In SARS Watch, [online] http://aric.adb.org/infocus/sars/SARSImpact_Malaysia.pdf,<br />

accessed August 2003<br />

Husain, S. 2003, ‘Malaysia’s <strong>Tourism</strong> promotion in West Asia Allays Fears of SARS’, Malaysian<br />

National News Agency<br />

Pacific Asia Travel Association (PATA) 2003, ‘Crisis. It Won’t Happen to Us!’, PATA, Bangkok<br />

Pacific Asia Travel Association (PATA) 2006, ‘Travel Statistics: as at June 14 2006’, [online]<br />

http://www.pata.org/patasite/index.php?id=111, accessed 23 August 2006<br />

The Culture, Arts and <strong>Tourism</strong> Ministry 2 July 2003, ‘RM900m allocated by ministry to revive local<br />

tourism industry’, [online] http://www.mocat.gov.my/index.cfm, accessed July 2003<br />

<strong>Tourism</strong> Malaysia 30 April 2003, ‘SARS cases in Malaysia’, [online]<br />

http://www.visitmalaysia.nl/persbericht.htm, accessed June 2003<br />

14 <strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> – An Authoritative Guide to Managing Crises in <strong>Tourism</strong>


World <strong>Tourism</strong> Organization (UNWTO) 2005, ‘Post Tsunami Re-Assessment: Growing Demand,<br />

Limited Supply’, [online] www.world-tourism.org/tsunami/reports/reassessment.pdf, accessed 23<br />

August 2006<br />

World <strong>Tourism</strong> Organization (UNWTO) 2005b, ‘<strong>Tourism</strong> Highlights 2005 Edition’, [online] facts and<br />

figures section at www.world-tourism.org, accessed 23 August 2006<br />

World <strong>Tourism</strong> Organization (UNWTO) 2003, ‘WTO - World <strong>Tourism</strong> Barometer’, [online]<br />

http://www.worldtourism.org/market_research/WTOBarom03_1.pdf, accessed 30 June 2003<br />

World <strong>Tourism</strong> Organization (WTO) 2001, ‘<strong>Tourism</strong> 2020 Vision: Volume 7: Global Forecasts and<br />

Profiles of Market Segments’, WTO<br />

World Travel and <strong>Tourism</strong> Council (WTTC) 2006, ‘World Travel & <strong>Tourism</strong> Climbing to New Heights –<br />

The 2006 Travel & <strong>Tourism</strong> Economic Research’, [online] www.wttc.org, accessed 23 August 2006<br />

World Travel and <strong>Tourism</strong> Council (WTTC) 2002, ‘APEC: The Impact of Travel & <strong>Tourism</strong> on Jobs &<br />

the Economy’, [online] www.apecsec.org.sg/apec/apec_groups/working_groups/tourism.html,<br />

accessed 15 September 2006<br />

<strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> – An Authoritative Guide to Managing Crises in <strong>Tourism</strong> 15


CHAPTER 2: RISK MANAGEMENT FOR TOURISM CRISES AND<br />

DISASTERS<br />

Aim of this Chapter<br />

The aim of this chapter is to provide background on the formal government disaster management<br />

processes for communities and to identify and examine issues of risk management which are<br />

relevant to the tourism industry and tourism operators.<br />

In this manual, risk management is concerned with identifying and analysing the risks (the chance of<br />

something happening) to an organization or community and deciding what can or should be done to<br />

address these risks. An official definition of risk management is: ‘the culture, processes and<br />

structures that are directed towards realizing potential opportunities whilst managing adverse effects’<br />

(Australian Standards Association/New Zealand Standards Association, 1995).<br />

<strong>Risk</strong> management in the tourism context refers to the planning and implementation of processes<br />

directed towards managing the adverse effects of crises and disasters on tourism. It also addresses<br />

tourism’s potential opportunities for the improvement in systems and procedures. This chapter<br />

addresses risk management for tourism destinations and individual tourism businesses and<br />

organizations.<br />

Introduction<br />

The Asian Disaster Preparedness Centre in Bangkok defines disaster as: ‘the serious disruption of<br />

the functioning of society causing widespread human, material, or environmental losses which<br />

exceed the ability of the affected communities to cope using their own resources’. In Carter’s manual<br />

for disaster managers funded by the Asian Development Bank, disaster is defined as: ‘an event;<br />

natural or man-made, sudden or progressive, which impacts with such severity that the affected<br />

community has to respond by taking exceptional measures’ (Carter, 1992). The World Health<br />

Organization’s definition of disaster is: ‘any occurrence that causes damage, economic disruption,<br />

loss of human life and deterioration in health and health services on a scale sufficient to warrant an<br />

extraordinary response from outside the affected area or community’.<br />

The common thread in these and other definitions of disaster is that there is disruption to the<br />

community which is of such magnitude that responding organizations, infrastructure and resources<br />

are overwhelmed, and there is an inability to return to normal without external assistance.<br />

For disaster management purposes, an appropriate and practical definition is one which recognizes<br />

the severity of the effects of a disaster, its impact upon a community, and the required level of<br />

response. In the Australian Emergency <strong>Management</strong> Glossary (EMA, 2006) disaster is defined as: ‘a<br />

serious disruption to community life which threatens or causes death or injury in that community<br />

and/or damage to property which is beyond the day-to-day capacity of the prescribed statutory<br />

authorities and which requires special mobilization and organization of resources other than those<br />

normally available to those authorities’.<br />

Regardless of the definition used, it is important to realize that disasters are different in kind and in<br />

scope from day-to-day emergency incidents. Disasters are not simply bigger events; they have a<br />

significant impact upon people and their infrastructure and community resources; they inevitably<br />

overwhelm the capacity of the community and the resources and facilities available for management<br />

of the immediate response, and they produce long-term problems of restoration and rehabilitation.<br />

Disasters are not over when the flood waters have receded, when the injured have been treated, or<br />

the bodies cleared away. The community has to be put back together: and the community includes<br />

the people, their infrastructure, and resources.<br />

16 <strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> – An Authoritative Guide to Managing Crises in <strong>Tourism</strong>


A disaster requires a total community response. One way or another, everyone is affected by a<br />

disaster and by the changes the event causes: to the economy, through the destruction of jobs and<br />

businesses; to community infrastructure, through destruction of the resources which the community<br />

usually depends upon; or to the social networks and structure, through death and injury.<br />

Disasters also require an integrated disaster management system: an active partnership between<br />

governments and authorities, organizations, agencies and the community. Although the tourism<br />

industry has rarely been a formal partner in these processes in the past, it is recommended that<br />

tourism should be a significant element within integrated community disaster management systems<br />

in the future.<br />

This chapter provides a practical framework within which tourism operators and tourism-related<br />

government agencies can address risk management processes for individual businesses,<br />

organizations and tourism destinations.<br />

Disasters and <strong>Tourism</strong><br />

The tourism industry is not responsible for the development or implementation of disaster<br />

management plans and arrangements: community disaster management agencies are responsible<br />

for them. Where possible, though, the tourism industry should participate in disaster planning and<br />

management activities through appropriate local, regional or national committees. Such participation<br />

enables the importance of tourism to be drawn to the attention of disaster management agencies and<br />

promotes the need for appropriate measures to protect visitors to be considered and developed.<br />

In this way, tourism operators and destinations can be proactive and potentially reduce the effects of<br />

disasters upon their industry. Importantly, the particular needs of tourism, including visitors and visitor<br />

markets, can be addressed in the planning processes.<br />

Crisis <strong>Management</strong><br />

Crisis is defined as: ‘any situation that has the potential to affect long-term confidence in an organization<br />

or a product, or which may interfere with its ability to continue operating normally’ (PATA, 2003). Crisis<br />

management is used in this guide as the term which applies to the means by which a tourism<br />

business/organization or destination prepares for, responds to, and recovers from, a crisis.<br />

Crises for tourism operators and destinations may arise from internal (organizational) sources or from<br />

external events (community events such as the impact or threat of a disaster). Some of the case<br />

studies in this guide highlight the crises faced by tourism businesses/organizations and destinations<br />

as a result of community disasters such as Hurricane Katrina and the Bali Bombings. In both cases,<br />

the community disaster affected confidence in tourism and interfered with its ability to continue normal<br />

operations.<br />

The Role of the <strong>Tourism</strong> Industry in <strong>Risk</strong> <strong>Management</strong><br />

There are two fundamental roles for tourism in risk management: the first of these is as a partner with<br />

government and community agencies in the development of multi-agency, coordinated disaster<br />

management plans, systems, procedures and processes which include the needs of tourism; the<br />

second is to develop plans and procedures appropriate to a destination and to the specific roles and<br />

responsibilities of an organization, to train personnel to those plans, and to conduct regular tests of<br />

plans, procedures and personnel with subsequent amendment and updating.<br />

No organization involved in disaster management should work in isolation. Each tourism operator<br />

and organization is part of the disaster management community and should function within the<br />

<strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> – An Authoritative Guide to Managing Crises in <strong>Tourism</strong> 17


established, coordinated and integrated system. The development of effective plans and procedures<br />

in the disaster management context is dependent upon:<br />

• regular inter-agency meetings, networking and liaison;<br />

• implementation of a disaster risk management process;<br />

• development of plans and procedures;<br />

• establishment and nurturing of partnerships;<br />

• community consultation;<br />

• effective communication;<br />

• training of personnel;<br />

• testing of plans, procedures and personnel through exercises (simulated disaster activities);<br />

and<br />

• efficient review and amendment procedures.<br />

The disaster management system in each country will have allocated roles and responsibilities for<br />

the management of disasters. It is not the responsibility of the tourism industry to assign these<br />

responsibilities or to allocate tasks to disaster management agencies. Rather, they should work<br />

within the established framework to add value to the overall outcomes.<br />

Different sections of the tourism industry will have different responsibilities in disaster management,<br />

and will need to liaise at different levels of the disaster management system. National or<br />

state/provincial-level tourism authorities, for example, should participate through membership of<br />

appropriate committees, in national and state/provincial-level disaster risk management processes,<br />

contributing to the development of policy and strategic planning processes. An individual tourism<br />

operator should contribute, again through appropriate committees, to local-level disaster<br />

management processes, including the development of response and recovery plans for the<br />

community, and plans and procedures for tourism facilities (eg, building evacuation plans). At all<br />

levels, disaster management is a multi-agency system.<br />

The second fundamental role for tourism in risk management is to be proactive and develop<br />

strategies for a destination or an individual business/organization to maximize the potential for<br />

continuity of normal business and to protect the safety and security of visitors and staff in the event of<br />

a disaster or crisis.<br />

The development and implementation of tourism risk management strategies which comprehensively<br />

address potential risks to tourism are now becoming an integral part of managing tourism in<br />

destinations. These tourism risk management strategies should link to community disaster<br />

management plans and include actions which tourism operators and organizations can take to<br />

complement the work of community disaster management agencies.<br />

<strong>Risk</strong> management plans for tourism should provide, as appropriate and as a minimum, for:<br />

• the safety of visitors and employees;<br />

• secure systems to communicate with all persons within the facility and within the destination;<br />

• security of buildings, facilities and equipment from the effects of the disaster;<br />

• contributing trained liaison personnel to the disaster management agencies during response<br />

and recovery operations, as required;<br />

• supplying resources to support response and recovery operations; and<br />

• procedures for return to normal business activities upon termination of the disaster<br />

operations.<br />

18 <strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> – An Authoritative Guide to Managing Crises in <strong>Tourism</strong>


Hazards (Sources of <strong>Risk</strong>)<br />

Hazards and risks are two different things. A hazard is a source of potential harm (to a community or<br />

an organization); while risk is defined as the chance of something happening that will have an impact<br />

upon objectives. There may be a high level of risk that a hazard will impact upon a community, for<br />

example, or a low level of risk (that is, chance) of the hazard impacting. Hazards are also referred to<br />

as sources of risk.<br />

Asia and the Pacific, along with the rest of the world, face a wide range of disasters and crises from a<br />

variety of hazards including those from:<br />

Natural hazards<br />

Technological hazards<br />

Biological hazards<br />

Civil/political hazards<br />

cyclone, storm surge, flood, tsunami, earthquake, mudslide,<br />

avalanche, volcanic eruption.<br />

failure of technical systems relating to industrial sites,<br />

transportation, infrastructure.<br />

spread of disease amongst people or animals, pests,<br />

contamination.<br />

terrorism, sabotage, civil unrest, hostage situations.<br />

Hazards are not in themselves disasters. Each hazard has the potential to impact upon a community<br />

and to cause loss or harm to the community or the environment. Even a hazard impact will not<br />

necessarily produce a disaster. If an earthquake, for example, were to occur in a remote and<br />

unpopulated area and cause no harm to people or damage to property or facilities, it would not be a<br />

disaster.<br />

The World <strong>Tourism</strong> Organization (2003) identifies risks to the safety and security of visitors, host<br />

communities and tourism employees from four sources:<br />

1. The Human and Institutional Environment<br />

These risks exist when visitors fall victim to:<br />

• common delinquency (theft, pickpocketing, assault, burglary, fraud, deception);<br />

• indiscriminate and targeted violence (such as rape) and harassment;<br />

• organized crime (extortion, the slave trade, coercion);<br />

• terrorism and unlawful interference (attacks against state institutions and the vital interests of<br />

the state), hijacking and hostage taking;<br />

• wars, social conflicts and political and religious unrest; and<br />

• a lack of public and institutional protection services.<br />

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2. <strong>Tourism</strong> and Related Sectors<br />

<strong>Tourism</strong> and sectors related to tourism such as transport, sports and retail trade, can endanger<br />

visitors' personal security, physical integrity and economic interests through:<br />

• poor safety standards in tourism establishments (fire, construction errors, lack of anti-seismic<br />

protection);<br />

• poor sanitation and disrespect for environmental sustainability;<br />

• the absence of protection against unlawful interference, crime and delinquency at tourism<br />

facilities;<br />

• fraud in commercial transactions;<br />

• non-compliance with contracts; and<br />

• industrial disputes by staff.<br />

3. Individual Travellers<br />

Travellers or visitors can endanger their own safety and security, and those of their hosts by:<br />

• practicing dangerous sports and leisure activities, dangerous driving, and consuming unsafe<br />

food and drink;<br />

• travelling when in poor health, which deteriorates during the trip;<br />

• causing conflict and friction with local residents through inadequate behaviour towards the<br />

local communities or by breaking local laws;<br />

• carrying out illicit or criminal activities (eg, trafficking in illicit drugs);<br />

• visiting dangerous areas; and<br />

• losing personal effects, documents, money, etc, through carelessness.<br />

4. Physical and Environmental <strong>Risk</strong>s<br />

Physical and environmental damage can occur if travellers:<br />

• are unaware of the natural characteristics of the destination, in particular its flora and fauna;<br />

• have not undertaken adequate medical preparations for the trip (vaccinations, prophylaxis);<br />

• do not take the necessary precautions when consuming food or drink or in their personal<br />

hygiene; and<br />

• are exposed to dangerous situations arising from the physical environment.<br />

Physical and environmental risks are also largely personal risks: the result of the traveller’s ignorance or<br />

his or her disregard for potential risks. In fact, overseas visitors are most likely to be injured in unfamiliar<br />

environments and while participating in unfamiliar activities (Page & Meyer, 1997).<br />

Despite these four identified sources of risk, the threat to physical safety has become the major<br />

concern for travellers since the events of 11 September 2001 (World <strong>Tourism</strong> Organization, 2003).<br />

20 <strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> – An Authoritative Guide to Managing Crises in <strong>Tourism</strong>


The Nature of Disasters<br />

Some hazards are seasonal (for example, cyclones), but others are less predictable and could occur<br />

almost anywhere and at any time. Disasters differ greatly in their characteristics, and thus in their<br />

potential to affect destinations.<br />

When examining the nature of disasters, the following aspects have to be considered for each<br />

potential hazard:<br />

• Cause<br />

Is it natural, technological, biological, etc?<br />

• Frequency<br />

Is it a regular or seasonal event (eg, cyclone, floods) which can be anticipated?<br />

• Duration<br />

Will it have a limited duration such as an explosion, or be prolonged (inundation floods,<br />

epidemics)?<br />

For tourism this has significant implications for the care and well-being of visitors and employees.<br />

Disasters which can be of prolonged duration will, at the very least, require the development of<br />

contingency plans for the return of visitors to their homes.<br />

• Speed of onset<br />

Will it develop rapidly with little or no time for warnings to be issued (eg, aircraft crash), or<br />

gradually as in the case of floods (except flash floods), allowing time for warning and perhaps<br />

even for protective measures to be taken?<br />

Having time available to provide warnings and information and for measures to be undertaken for<br />

the protection of people will affect the public’s perception of the level of preparedness and the<br />

response capability of disaster management agencies within a destination.<br />

• Scope of impact<br />

Will the disaster have the capacity to affect only a section or sections of the community, or will it<br />

be diffused, affecting the entire community and causing widespread disruption to infrastructure,<br />

services and facilities?<br />

From a tourism perspective, will the disaster have the capacity to affect a single tourism operator<br />

or a whole destination, or might it have a worldwide impact upon the tourism sector, such as the<br />

September 11 bombing of the World Trade Centre in 2001?<br />

• Destructive potential<br />

Could it damage a single building, or all the homes and buildings, infrastructure and utilities in the<br />

entire community? What type of destruction (personal injury and/or property damage)?<br />

A hazard capable of destroying a community and its infrastructure will, again, necessitate the<br />

development of contingency plans for the relocation of visitors to a safer place with essential<br />

facilities, and for their return to their homes.<br />

Although the disaster management agencies will consider each of these factors from the perspective<br />

of the effects upon the community, the tourism industry should also consider each in terms of their<br />

potential effects upon tourism facilities, infrastructure and operations. Although the tourism industry<br />

should contribute to the community disaster management process, it is essential at each stage to<br />

identify the specific effects and implications for the tourism industry and operations.<br />

<strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> – An Authoritative Guide to Managing Crises in <strong>Tourism</strong> 21


New Orleans and the Lessons of Hurricane Katrina<br />

New Orleans, Louisiana, USA, home of the Mardi Gras, jazz musicians, and an extensive heritage<br />

of art, culture and culinary delights. As a world-renowned visitor destination it attracted between 8.5<br />

million and 10 million visitors annually, and generated approximately 800,000 jobs. <strong>Tourism</strong> was the<br />

region’s second largest industry.<br />

On 29 August 2005, Category 5 Hurricane Katrina struck New Orleans, causing widespread<br />

damage and breaches in the city’s levee system. As the Mississippi River flowed into the low-lying<br />

city, up to 80% of New Orleans became submerged. International media coverage exposed a global<br />

audience to images of death, destruction and mayhem. Despite warnings, evacuations were poorly<br />

planned and coordinated. Many visitors were transferred to shelters or simply advised to make<br />

arrangements to leave the area. Limited understanding and access to transport resulted in people<br />

staying in their homes. Last-minute evacuees blocked highways and fuel stations. City officials<br />

exercised limited control – few had anticipated an event of such severity, despite the lessons from a<br />

major disaster management exercise held twelve months earlier which was based upon a scenario<br />

involving issues which were an uncanny replica of Katrina.<br />

Initial search and rescue efforts were hindered by the continuing rising waters and accumulated<br />

debris as buildings, dwellings, infrastructure and utilities (public utilities/plant) had suffered massive<br />

damage. With limited reliable information available, media reports emphasized tragedy, social<br />

tension, looting and the chaotic plight of New Orleans, characterized by the horrors of the “Superdome”<br />

(which sheltered many visitors amongst the approximately 20,000 evacuees). Conditions<br />

deteriorated for survivors, and relief arrangements were complicated by access difficulties.<br />

Sanitation and the potential for disease outbreaks became serious issues.<br />

As officials debated the merits of rebuilding or relocating New Orleans, residents and volunteers<br />

returned to begin clean-up operations. While some operators managed to quickly resume or even<br />

maintain services, support infrastructure was limited. Hotels, airports, museums, entertainment and<br />

dining establishments had suffered extensive damage. Lacking housing and immediate employment<br />

opportunities, many employees relocated. Scheduled meetings, conferences and festivals were<br />

cancelled, relocated or indefinitely postponed.<br />

For small tourism businesses, recovery has so far proved extremely challenging. While the<br />

Government has assisted with debris removal, grants and advertising and marketing budgets,<br />

rebuilding the industry and positive perceptions has proved difficult. ‘Louisiana’s Rebirth’ was<br />

significantly delayed by an active hurricane season which made consumers wary. With the reopening<br />

of hotels, restaurants and parks, tourism is returning but visitor spending is limited.<br />

Physical reconstruction of the city is still far from complete, and many residents and business have<br />

not returned. While New Orleans remains an intriguing city, its restoration as a national and<br />

international visitor destination requires confidence in the process of community recovery and<br />

associated safety and security measures.<br />

Important lessons for the tourism industry from Katrina include:<br />

• risk and emergency management planning (including insurance) should be an individual<br />

business priority and not just a government responsibility;<br />

• it is important to understand community and environmental vulnerabilities beyond just the<br />

tourism industry;<br />

• communication and coordination with emergency management agencies can help protect<br />

life and property;<br />

22 <strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> – An Authoritative Guide to Managing Crises in <strong>Tourism</strong>


• while physical damage may be inevitable, identification of vital resources and planning can<br />

help minimize losses;<br />

• all businesses should have evacuation procedures, catering for needs and demands of<br />

visitors and staff;<br />

• effective crisis communications should begin before an event and be maintained with timely<br />

and factual information from reliable sources;<br />

• the media and public need to be continually provided with accurate information;<br />

• physical recovery should include enhanced safety and security measures; and<br />

• tourism recovery is heavily dependent on successful community recovery.<br />

(Source: City of New Orleans, 2006 and BBC News, 2006)<br />

The Toll from Disasters in 2005<br />

Data from the International Strategy for Disaster Reduction (UNISDR) in Geneva and the Centre for<br />

Research on the Epidemiology of Disasters (CRED) in Brussels reveal that there were 360 natural<br />

disasters in 2005 (up from 305 in 2004), and a total of 157 million people (an increase of 7 million<br />

from 2004) required assistance, were evacuated from their homes, were injured and/or lost their<br />

livelihoods.<br />

Disasters cost a total of $US159 billion in 2005 (a rise of 71% over 2004’s total), although it should<br />

be noted that losses caused by Hurricane Katrina in the United States accounted for a remarkable<br />

$US125 billion of that sum.<br />

Fortunately, the loss of life from disasters was lower in 2005 than in the previous year when 244,500<br />

people lost their lives in natural disasters. The numbers of deaths have been extraordinarily high for<br />

the past two years because of the Indian Ocean tsunami which accounted for 92% of the deaths from<br />

disasters in 2004, and the South Asian earthquake which resulted in 81% of the deaths in 2005.<br />

<strong>Tourism</strong> operators will be only too well aware that a disaster, or even the threat of a disaster such as<br />

an epidemic, has the potential to destroy the economy of a region or country. Disaster managers use<br />

the term ‘cascade effect’ to describe how a disaster can trigger a secondary event (eg, a mudslide<br />

following heavy rains and flooding). But the economic and social impacts of disasters upon<br />

communities, especially the most vulnerable developing nations, may produce severe, negative<br />

consequences across an entire country or region.<br />

The <strong>Risk</strong> <strong>Management</strong> Standard<br />

In 1995, the Australia/New Zealand Standard 4360-1995 <strong>Risk</strong> <strong>Management</strong> was published.<br />

Developed to provide a generic framework for organizations in the identification, analysis,<br />

assessment, treatment and monitoring of risk, the Standard enables organizations to manage risk,<br />

minimize losses and to maximize opportunities.<br />

The Standard was revised in 1999 and updated again in 2004.<br />

Adapting the <strong>Risk</strong> <strong>Management</strong> Standard to Disaster/Emergency <strong>Risk</strong> <strong>Management</strong><br />

While it was clear that the A/NZS 4360-1995 <strong>Risk</strong> <strong>Management</strong> could be applied outside of an<br />

organizational context, the process of adapting this Standard for use in a disaster management<br />

context included addressing the following key issues:<br />

<strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> – An Authoritative Guide to Managing Crises in <strong>Tourism</strong> 23


• the <strong>Risk</strong> <strong>Management</strong> Standard contains a process developed for single organizations and<br />

industries, but disaster management involves multiple organizations working within a<br />

community context; and<br />

• in industry terms, risk is measured in terms of the likelihood and consequence of a hazard<br />

impacting upon an organization, a rather mathematical approach especially suited to<br />

engineering; disaster management, however, sees risk as a function of hazard and the<br />

vulnerability of communities, more of a sociological approach.<br />

The Disaster <strong>Risk</strong> <strong>Management</strong> process was originally developed in Australia by Emergency<br />

<strong>Management</strong> Australia (EMA) and has since been further developed for other purposes. In the<br />

Pacific, for example, the Disaster <strong>Risk</strong> <strong>Management</strong> process has been adapted to meet local needs<br />

and is known as CHARM (Comprehensive Hazard and <strong>Risk</strong> <strong>Management</strong>); the Asian Disaster<br />

Preparedness Centre in Bangkok promotes its Community-Based Disaster <strong>Risk</strong> <strong>Management</strong><br />

process (CBDRM) throughout South East Asia.<br />

The South Asian Association of Regional Cooperation (SAARC, which includes Bangladesh, Bhutan,<br />

India, Maldives, Nepal, Pakistan and Sri Lanka) has recently signed an agreement to adopt a<br />

Comprehensive Disaster <strong>Management</strong> Program framework, of which Community <strong>Risk</strong> Assessment<br />

(adapted from AS/NZS 4360:2004 <strong>Risk</strong> <strong>Management</strong> and the Disaster <strong>Risk</strong> <strong>Management</strong> process) is<br />

an integral part.<br />

The Role of the <strong>Tourism</strong> Industry in <strong>Risk</strong> <strong>Management</strong> and Disaster <strong>Risk</strong> <strong>Management</strong><br />

In simple terms, the risk management and disaster risk management processes are concerned with<br />

identifying and analysing the risks (‘the chance of something happening that will have an impact upon<br />

objectives’) to an organization or the community, and deciding what can and should be done about<br />

them. They are logical and systematic problem-solving and decision-making processes.<br />

The tourism industry should be involved in both risk management (the organizational process) and<br />

disaster risk management (the multi-agency, community-based process).<br />

The tourism industry should use the risk management process to identify, analyse, evaluate, treat,<br />

monitor and review risks to businesses and organizations and to destinations as a whole. In the<br />

community disaster management context, tourism operators and industry representatives should, as<br />

stakeholders in the process, have significant input into the disaster risk management process, and<br />

contribute to the development and implementation of associated disaster management plans and<br />

systems, and training and testing regimes.<br />

The <strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> Process<br />

In this guide, the generic risk management process has been adapted to be specific to the needs and<br />

context of tourism. The process has been developed for destinations, but the same principles also<br />

apply to a tourism business or organization undertaking a risk management process.<br />

The following diagram provides an overview of the risk management process which is based upon<br />

two enabling activities (communicate and consult, and monitor and review), and five major activities:<br />

establish the context, identify risks, analyse risks, evaluate risks and treat risks.<br />

24 <strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> – An Authoritative Guide to Managing Crises in <strong>Tourism</strong>


Figure 8: <strong>Risk</strong> <strong>Management</strong> Process<br />

(Source: Emergency <strong>Management</strong> Australia, 2004)<br />

1. COMMUNICATE AND CONSULT<br />

Communication and consultation are enabling activities which are fundamental to risk management,<br />

and they must be undertaken at each step in the process. A two-way process of internal and external<br />

communication and consultation must be established and maintained between decision-makers and<br />

stakeholders and a communication plan developed. Stakeholders’ needs and opinions should be<br />

sought so that different views and areas of expertise are considered, so they understand the risks<br />

and the measures which will be taken, and so they contribute to the decision-making process.<br />

Adequate and appropriate communication and consultation will also ensure that stakeholders have a<br />

sense of ownership of, and commitment to, the tourism risk management process. It is essential to<br />

document all meetings and discussions with stakeholders.<br />

Stakeholders in the tourism destination context include:<br />

• politicians with an electoral or portfolio interest;<br />

• emergency services (police, fire, ambulance and other services);<br />

• tourism organizations and sectoral associations – at regional, state/provincial and national<br />

levels;<br />

• government officials;<br />

• hospital/medical personnel;<br />

• non-government organizations;<br />

• social welfare/recovery personnel;<br />

• owners/managers of at risk facilities;<br />

• experts/technical advisors;<br />

<strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> – An Authoritative Guide to Managing Crises in <strong>Tourism</strong> 25


• industry representatives;<br />

• airport and port operators;<br />

• utilities operators (gas, electricity, water, etc);<br />

• community action/interest groups; and<br />

• media.<br />

2. MONITOR AND REVIEW<br />

Monitoring and reviewing are enabling activities which are essential so that continual improvements<br />

can be achieved and to ensure the currency and relevance of the tourism risk management process.<br />

<strong>Risk</strong> doesn’t remain static, so it's essential that tourism risk management is an ongoing process with<br />

regular monitoring and review of hazards, elements at risk, and the progress, outcomes and efficacy<br />

of risk treatment measures. Systematic monitoring and review systems should be developed and<br />

maintained by:<br />

• establishing arrangements for monitoring, reviewing and documenting risks as part of the<br />

tourism risk management strategy;<br />

• developing a risk register computer database;<br />

• repeating the risk management cycle on a regular basis;<br />

• measuring progress and incorporating it into management performance measurement and<br />

reporting systems;<br />

• evaluating lessons from review processes and incorporating them into plans; and<br />

• amending plans and procedures as required.<br />

STEP 1 – Establish the Context<br />

This first step in the tourism risk management process is to establish the basic parameters or<br />

framework within which the risk management activities will take place, and to develop the criteria<br />

against which risk is to be evaluated. It includes identifying relevant policies, systems, procedures<br />

and intra-organizational and inter-organizational relationships. The organizational context includes<br />

the internal and external environment.<br />

1. Establish the basic parameters. Identify:<br />

• the nature and scope of issues to be addressed to ensure the safety of the destination;<br />

• relevant disaster/emergency management legislations, policies and management<br />

arrangements;<br />

• public health issues, occupational health and safety requirements and issues, and liabilities;<br />

and<br />

• relevant political, social, cultural and environmental factors.<br />

2. Identify stakeholders and their concerns, perceptions of risk, and values.<br />

3. Establish relevant community structures and arrangements.<br />

4. Develop risk evaluation criteria for the destination (in consultation with all stakeholders).<br />

26 <strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> – An Authoritative Guide to Managing Crises in <strong>Tourism</strong>


Examples of risk criteria might include:<br />

• Any preventable disaster which causes damage to infrastructure or affects the continuity of<br />

normal tourism business is unacceptable.<br />

• Any preventable disaster which results in serious disruption to community utilities (power,<br />

water, sewerage, etc) is unacceptable.<br />

• Any preventable outbreak of disease or epidemic which causes illness or deaths in the<br />

community and to visitors is unacceptable.<br />

• Any preventable disaster which results in significant or long-term social disruption to the<br />

destination is unacceptable.<br />

• Any preventable accident to a visitor which results in loss of life is unacceptable.<br />

• Any preventable incident which affects the safety and security or confidence of visitors in the<br />

destination is unacceptable.<br />

Establishing the concerns and perceptions of risk within the destination is of paramount importance in<br />

establishing the context and developing risk evaluation criteria.<br />

Stakeholders should, as a result of consultation and communication, have a shared understanding of<br />

the process to be undertaken, its objectives and tasks, and the factors which might affect the<br />

process. Key information, meetings, decisions, outcomes and other relevant issues must be<br />

documented.<br />

STEP 2 – Identify <strong>Risk</strong>s<br />

Step 2 in the risk management process is designed to identify the risks which are to be managed. A<br />

systematic process is necessary to ensure that all relevant risks are identified. <strong>Risk</strong> will change, so<br />

an important part of monitoring and review processes is to identify new risks which have emerged for<br />

a destination.<br />

It is also essential to identify the susceptibility (the potential to be affected by loss) and resilience (a<br />

measure of how quickly a system recovers from failure) of the destination. Part of the tourism risk<br />

management process is to reduce the level of susceptibility and increase the resilience of the<br />

destination.<br />

1. Gather information on hazards (sources of risk) from scientific data, disaster management<br />

sources, records of past events, consultation with stakeholders and experts. Develop a list of all<br />

hazards.<br />

2. Identify each hazard against descriptors (duration, scope of impact, etc). (See earlier section of<br />

this chapter titled, The Nature of Disaster.)<br />

3. Describe the elements at risk: who or what will be affected by each of the hazards. These<br />

elements include:<br />

• people;<br />

• environment;<br />

• facilities;<br />

• infrastructure;<br />

• utilities; and<br />

• economy.<br />

<strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> – An Authoritative Guide to Managing Crises in <strong>Tourism</strong> 27


Example of Elements at <strong>Risk</strong> for a Destination<br />

Sources of risk<br />

Elements at <strong>Risk</strong><br />

(hazards) people environment utilities infrastructure<br />

Tsunami <br />

Epidemic x x<br />

Earthquake <br />

Crime against visitors x x x<br />

Riot x <br />

4. Identify the risk relationship. Review each hazard and the elements at risk and identify if there is a<br />

relationship between them. If so, establish the reason for the relationship.<br />

Develop risk statements for each of the relationships identified. Examples:<br />

• There is a risk that flooding within the town will inundate the X visitor hotel.<br />

• There is a risk that in the event of bad weather there could be an aircraft crash with loss of<br />

many lives including visitors.<br />

These risk statements will be used as a tool for analysis and evaluation.<br />

Source of risk Element at risk Relationship (example)<br />

Flood Visitor hotel Inappropriate siting of building on known flood<br />

plain.<br />

Aircraft crash People, infrastructure Inadequate all-weather navigation aids at<br />

airport.<br />

STEP 3 – Analyse <strong>Risk</strong>s<br />

The purpose of analysing risks is to develop an understanding of the risks the destination is facing.<br />

This understanding will assist in the decision-making on which risks need to be treated and in<br />

identifying the best risk treatment strategies to apply. The step includes analysing the likelihood and<br />

consequences of risks, and also the existing control measures.<br />

1. Identify existing control measures and assess their effectiveness in minimizing likelihood and<br />

consequences.<br />

Examples of existing control measures for flood might include:<br />

• Flood plain management systems;<br />

• Evacuation plans;<br />

• Warning systems;<br />

• Emergency services units trained and equipped for flood rescue tasks;<br />

• Municipal response and recovery plans;<br />

• Annual exercises (tests) of plans and personnel; and<br />

• Public education program.<br />

2. Establish forms of qualitative and quantitative analysis.<br />

28 <strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> – An Authoritative Guide to Managing Crises in <strong>Tourism</strong>


• Qualitative analysis – words are used to describe the magnitude of potential<br />

consequences and of the likelihood that those consequences will occur.<br />

• Quantitative analysis – uses numerical values for likelihood and consequences.<br />

Example: Qualitative Measures of Consequence for <strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong><br />

Level Descriptor Description<br />

1 Insignificant No disruption to destination; no disturbance of visitors; no<br />

financial loss; no media or public interest.<br />

2 Minor Minimal disruption to destination and visitors; limited or no<br />

financial loss; no media coverage or public interest.<br />

3 Moderate Short-term disruption to destination and services to visitors; some<br />

financial loss; limited media reporting.<br />

4 Major Disruption to destination and services to visitors for more than 24<br />

hours; financial losses, anger and frustration on the part of<br />

visitors; critical media reports and public criticism of destination.<br />

5 Catastrophic Unable to meet visitors’ requirements and provide normal service<br />

type and level; severe financial losses; widespread criticism of<br />

destination; critical international media reports; mass cancellation<br />

of bookings.<br />

Example: Qualitative Measures of Likelihood<br />

Level Descriptor Description<br />

A Almost certain Is expected to occur in most circumstances<br />

B Likely Will probably occur in most circumstances<br />

C Possible Might occur at some time<br />

D Unlikely Could occur at some time<br />

E Rare May occur only in exceptional circumstances<br />

Qualitative <strong>Risk</strong> Analysis Matrix – Level of <strong>Risk</strong><br />

Consequences<br />

Likelihood Insignificant<br />

1<br />

Minor<br />

2<br />

Moderate<br />

3<br />

Major<br />

4<br />

Catastrophic<br />

5<br />

A (almost certain) H H E E E<br />

B (likely) M H H E E<br />

C (moderate) L M H E E<br />

D (unlikely) L L M H E<br />

E (rare) L L M H H<br />

Legend:<br />

E: Extreme risk; immediate action required<br />

H: High risk; senior management attention needed<br />

M: Moderate risk; management responsibility must be specified<br />

L: Low risk; manage by routine procedures<br />

Any risk which has the potential for catastrophic, major or moderate (negative) effects upon a<br />

destination and is almost certain to occur, must be acted upon as a matter of priority. At the opposite<br />

end of the priority list will be any risk which occurs only rarely, if at all, and has only little if any effect<br />

on destinations. No destination has infinite resources to apply to risk treatment measures, so it’s<br />

necessary to work out what must be done to protect the destination in priority order. One simple but<br />

effective way of categorizing these measures is into:<br />

<strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> – An Authoritative Guide to Managing Crises in <strong>Tourism</strong> 29


1. Must do.<br />

2. Should do.<br />

3. Could do.<br />

STEP 4 – Evaluate <strong>Risk</strong>s<br />

Decisions have to be made about which risks have to be treated and in what order. The previous<br />

activities in risk analysis will provide the information on which to make those decisions. Decisions on<br />

risk treatment needs and priorities must be aligned with the destination’s expectations, values and<br />

perceptions of risk.<br />

1. Establish treatment needs and priorities in descending order. Where the same rating level is<br />

allocated to a number of risks, the protection of life should be a higher priority than protection<br />

measures for property, infrastructure, utilities or the environment.<br />

2. Stakeholder consultation is essential.<br />

3. Document:<br />

• The risks which are not to be treated.<br />

• The risks which will be treated in order of priority.<br />

• How the decisions were arrived at.<br />

Always monitor and review risks that you decide not to treat because priorities and circumstances<br />

may change over time.<br />

STEP 5 – Treat <strong>Risk</strong>s<br />

Before risks can be treated it is necessary to identify the options available, to assess the relative<br />

merits of each, and to select the most appropriate. <strong>Risk</strong> treatment plans should then be developed<br />

and implemented.<br />

Standard risk treatment options available include:<br />

• avoid the risk - choose not to proceed with an activity likely to generate risk;<br />

• reduce the likelihood of consequences by modifying the risk;<br />

• reduce the consequences of occurrence - by modifying susceptibility (exposure to the risk eg,<br />

through best practice systems: building evacuation plans, sprinkler systems and trained staff<br />

will reduce the consequences of fire in a visitor hotel) and/or increasing resilience (capacity to<br />

sustain losses);<br />

• transfer the risk – have another party accept or share the risk (eg, insurance companies – are<br />

the premiums affordable, is protection available?);<br />

• retain the risk - accept the risk and plan to manage the consequences (but only if the<br />

consequences are able to be managed without adversely affecting the destination or the<br />

perceptions of visitors);<br />

30 <strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> – An Authoritative Guide to Managing Crises in <strong>Tourism</strong>


• prevention/mitigation – legislation, building codes, land use management, relocation of<br />

people/property (eg, from flood plains), engineering strategies (eg, using structural methods<br />

to reduce exposure to hazards, including levee banks);<br />

• preparedness – awareness and education programs, development of response and recovery<br />

plans, training and testing, development of visitor information, communication and warning<br />

systems, development of mutual aid arrangements between destinations;<br />

• response – implementation of plans and standard operating procedures, effective acquisition<br />

and application of resources to tasks, provision of accurate and timely warning and visitor<br />

information messages, search and rescue activities, personal protective equipment for<br />

response personnel; and<br />

• recovery – restoration of essential services and facilities and normal business in the<br />

destination, financial and psychosocial supports, temporary housing, collection and<br />

distribution of appeal funds.<br />

Some criteria for assessing which options are applicable include:<br />

• Is the option affordable?<br />

• Is it the most cost-effective?<br />

• Will it be endorsed by government?<br />

• Will it be accepted by stakeholders, including visitors?<br />

• Will it encourage further risk reduction measures by others?<br />

• Is it too complicated or difficult?<br />

• Will it provide long-term benefits?<br />

• Will the benefits be realized quickly?<br />

• Will it adversely affect the destination?<br />

• Should we be funding this or can/should other agencies or government share the cost?<br />

• Will this treatment option create new risks for the destination or the industry?<br />

Destinations need to consider a cost-benefit analysis for proposed treatment options to ensure that<br />

the treatment is realistic in economic terms. It may be that a tourism organization within the<br />

destination, the country, or from overseas could be approached to assist with resources to implement<br />

the risk treatment plan. Where the local or regional economy is heavily dependent upon the tourism<br />

industry, costs might be shared by community or government organizations.<br />

<strong>Risk</strong> treatment plan:<br />

The following steps must be addressed in the risk treatment plan:<br />

• Allocate responsibilities;<br />

• Identify timelines;<br />

• Decide methods of implementation;<br />

• Establish expected outcomes;<br />

• Source and allocate budget;<br />

• Identify key performance indicators and milestones; and<br />

• Establish monitoring and review processes.<br />

<strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> – An Authoritative Guide to Managing Crises in <strong>Tourism</strong> 31


Establish and maintain regular monitoring and review of:<br />

• decisions and decision-making processes;<br />

• expectations and attitudes;<br />

• new sources of risk;<br />

• risk ratings and priorities of existing hazards;<br />

• allocation of risk ratings and priorities to newly identified hazards;<br />

• elements at risk;<br />

• implementation of existing risk treatment measures;<br />

• additional risk treatment measures to be implemented;<br />

• responsibilities for implementation; and<br />

• timelines for each stage and project completion.<br />

Continue communication and consultation with stakeholders on progress of risk treatment<br />

implementation.<br />

Residual risk<br />

Not all crises can be avoided or prevented.<br />

No matter how effective tourism risk management processes are, crises and disasters will still impact<br />

upon destinations and the tourism facilities within them. The tourism industry has learned to its<br />

considerable cost that even the possibility of a biological disaster (pandemic) is sufficient to cause a<br />

crisis in the industry. The Queensland Government, Australia (2002) has identified that certain events<br />

may trigger or magnify other factors; for example, increases in the cost of public liability insurance for<br />

tourism operators as a result of the September 11 terrorist attacks in New York.<br />

Residual risk is the term given to the risk remaining after the implementation of risk treatment<br />

measures. The treatment of residual risk is to develop plans to respond to and recover from crises<br />

and disasters.<br />

<strong>Tourism</strong> should develop risk management plans and also contribute to multi-agency community<br />

disaster plans.<br />

Chapter Summary<br />

This chapter considers the key elements of crises and disasters and their effects upon<br />

businesses/organizations and destinations, and identifies the role of the tourism industry in risk<br />

management. The chapter provides a practical framework within which tourism destinations and<br />

businesses/organizations can identify, analyse, evaluate, treat, monitor and review risks and<br />

identifies the critical role of the tourism industry in contributing to the development and<br />

implementation of multi-agency disaster management plans and systems.<br />

32 <strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> – An Authoritative Guide to Managing Crises in <strong>Tourism</strong>


The South Asia Tsunami and Recovery of <strong>Tourism</strong> in the Andaman<br />

On 26 December 2004 a massive undersea quake off the coast of Sumatra generated a series of<br />

overwhelming tsunami waves which battered the exposed coastal regions of 14 different countries<br />

bordering the Indian Ocean. With over 230,000 recognized fatalities and 1.7 million homeless;<br />

schools, hospitals, businesses, infrastructure and entire villages were effectively washed away. In<br />

Thailand, Maldives, India and Sri Lanka many of the areas affected also corresponded with tropical<br />

sun, surf and sand destinations experiencing the apex of Christmas vacations and high tourist<br />

season. Given the large number of foreign casualties, media attention and visibility afforded by<br />

abundant video footage and photos, the world was inundated with images of the tsunami, death and<br />

complete destruction.<br />

While it may never be possible to accurately assess the full socioeconomic cost of this disaster<br />

based on the number of popular destinations impacted, damage experienced and unfortunate<br />

timing of the event, Francesco Frangialli of the World <strong>Tourism</strong> Organization (UNWTO) has<br />

described this tsunami as "the greatest catastrophe ever recorded in the history of world tourism"<br />

(2006). Beyond the obvious and direct physical impacts, affected areas such as Southern Thailand<br />

have also been faced with the loss of their primary income and livelihoods - derived from tourism<br />

revenues. Amidst the immediate search, rescue and reconstruction efforts these destinations have<br />

been challenged with the predicament of managing a serious tourism crisis.<br />

The Event<br />

For the residents and tourists in Phuket and the Andaman region, the first natural sign of the<br />

impending tsunami was the earth tremors felt at 7:58am on Sunday 26 December 2004<br />

corresponding with the massive undersea quake in the Sunda Trench. Lacking a localized<br />

monitoring or warning system, experts at remote centres were slow to appreciate the possible<br />

danger that this quake signified. While it has since been acknowledged that a potential tsunami<br />

warning was issued to Thai Government officials approximately 15 minutes before the first waves<br />

impacted the local coastline, the region lacked the appreciation, understanding or communications<br />

network to effectively warn all of the at risk regions and communities. Preceding wave behaviour<br />

and subsequent height varied in accordance with differences in the local geography, however, as<br />

few were aware of the natural indicators, the tsunami impacted on a generally unsuspecting and<br />

unprepared population. In addition to the physical damage and accumulation of debris, human<br />

deaths from the six affected Thai provinces have been officially recorded as over 8,200 (this figure<br />

includes those reported missing). Reflecting the international popularity of the Thai beachside<br />

destinations and resorts, 2,436 were foreign nationals from 37 countries.<br />

Impacts and Response<br />

Like most destinations affected by the South Asian tsunami, the popular Andaman region of<br />

Southern Thailand experienced an immediate exodus of tourists. While actual numbers vary<br />

depending on proximity to the coast and damage suffered, the experience and uncertainty of the<br />

event was sufficient to generate continued concerns for personal safety and security. Occupancy<br />

rates in many functioning coastal resorts quickly dropped to single figures. Although the majority of<br />

the luxury resorts of Khao Lak, and along the east coast and isthmus of Phi Phi Don Island were<br />

effectively decimated, within 48 hours the regional tourism authority was able to publish an<br />

authoritative guide indicating that approximately 80% of accommodation providers within the region<br />

had suffered minimal or no physical damage.<br />

Experienced in a variety of human and natural disasters the Thai Department of Disaster Prevention<br />

and Mitigation were able to rapidly and effectively coordinate operational response efforts, despite<br />

the scope and breadth of the disaster. An Emergency Operations Centre (EOC) was established in<br />

the unaffected regional capital of Phuket City with intentional integration of emergency response,<br />

community and victims’ relief, media, communications, tourism, medical services and embassy<br />

<strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> – An Authoritative Guide to Managing Crises in <strong>Tourism</strong> 33


epresentatives. While all initial enquiries were directed to this coordination centre, smaller centres<br />

were also established in hospitals and affected provinces. Volunteers assisted at the EOC, medical<br />

facilities and the airport, while accommodation and service providers donated food, shelter and<br />

support for victims and emergency responders.<br />

In the high profile tourist resort of Patong most utilities were restored within days and the beach was<br />

quickly cleared of debris. With rapid evacuations and an initial distribution of resources, issues of<br />

food, water and sanitation never became a real threat for tourists. Yet, as repetitive images and<br />

stories of the disaster continued to dominate the media, most of the world was left with the<br />

impression that the entire island of Phuket had been devastated and blanket travel advisories were<br />

implemented. Disease and health epidemics related to stagnant water bodies and unrecovered<br />

corpses were seen as probable risks to travellers. Despite the influx of trained personnel, finances,<br />

resources and medical aid from around the globe, it proved difficult to relay credible information. As<br />

response efforts moved from search and rescue endeavours to further medical assistance, victim<br />

identification, repatriation, trauma/grief support and initial damage assessments, few authorities<br />

seemed willing to comment on popular speculation regarding a subsequent tsunami.<br />

Local businesses, many of which lacked insurance, were left to consider future options and<br />

business viability. Where possible, stock was recovered, sold at discounted prices or restored to<br />

former condition. As hotels, buildings and resorts were fenced from public view and looting, debris<br />

accumulated in the street for removal by government and private-enterprise-sponsored contractors.<br />

While struggling with personal grief and loss, the community, all sectors of business, industry, and<br />

government worked together to restore the operational capacity and image of Patong and other less<br />

affected regional resorts. The national government offered official support and compensation for all<br />

direct victims. A conference hosted in Phuket by the World <strong>Tourism</strong> Organization and international<br />

industry experts developed the Phuket Action Plan to assist and guide the restoration of tourism<br />

throughout the affected regions<br />

Rebuilding and Recovery<br />

With occupancy rates recorded below 40% within the first nine months following the incident,<br />

recovery has strongly focused on emotional support, physical reconstruction, safety and greater<br />

tourism sustainability. A subsequent earthquake (yet no resultant tsunami) on 28 March 2005 was<br />

sufficient to demonstrate a residual fear regarding this hazard. Consistent with the United Nations<br />

resolution to develop an Indian Ocean Tsunami Warning System, Thailand embarked on its own<br />

public warning system, complete with a string of coastal warning towers. With scheduled training<br />

evacuations, practice drills and improved local hazard awareness education, Thailand has strived to<br />

actively promote the message that it values the lives of both residents and tourists.<br />

Organized journalist trips and high profile celebrity visits have also been staged to emphasize a<br />

return to conditions of safety and security. Extensive recovery plans implemented between the<br />

government, community and industry have sought to address many of the medium- and long-term<br />

issues associated with both tourism development and the tsunami including; environmental<br />

encroachment, water quality monitoring, resource use, and the proximity of structures to the<br />

coastline. While international arrival figures over the first anniversary of the tsunami (coinciding with<br />

a traditional peak tourist season) were encouraging for most, they were short of the optimistic<br />

predictions of full industry recovery.<br />

Given the scale and severity of the disaster, the Andaman region has yet to fully recover<br />

economically yet, in terms of response and consumer confidence initiatives, this region has<br />

demonstrated relative success in its crisis management capacity. Awareness, local hazard<br />

education and communication may have been improved, however, all stakeholders have since<br />

become proactively involved in mitigation efforts and making the tourism product and destination<br />

more resilient to future adversity.<br />

(Source: Phuket Gazette, 2006; Wikipedia, 2006; and UNWTO, 2006)<br />

34 <strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> – An Authoritative Guide to Managing Crises in <strong>Tourism</strong>


References<br />

Australian Standards Association/New Zealand Standards Association 1995, ‘AS/NZS 4360-1995<br />

<strong>Risk</strong> <strong>Management</strong>’<br />

BBC News 30 August 2006, ‘Hurricane Katrina. In Depth’, [online]<br />

http://news.bbc.co.uk/1/hi/in_depth/americas/2005/hurricane_katrina/default.stm, accessed 2<br />

September 2006<br />

Carter, N. 1992, ‘Disaster <strong>Management</strong>: A Disaster Manager’s Handbook’, Asian Development Bank,<br />

Manila, Philippines (a companion document to Disaster <strong>Management</strong> in Asia and the Pacific 1991)<br />

City of New Orleans 2006, ‘Home Page’, [online]<br />

http://www.cityofno.com/portal.aspx?portal=1&tabid=1, accessed 2 September 2006<br />

Emergency <strong>Management</strong> Australia (EMA) 2006, ‘Australian Emergency <strong>Management</strong> Glossary’,<br />

[online] http://www.ema.gov.au/ema/emadisasters.nsf/webpages/Introduction?OpenDocument,<br />

accessed 18 September 2006<br />

Pacific Asia Travel Association (PATA) 2003, ‘Crisis. It Won’t Happen to Us!: Expect the Unexpected,<br />

Be Prepared’, [online] www.pata.org/patasite/fileadmin/docs/general/Crisis.pdf, accessed 18<br />

September 2006<br />

Page, S.J. & Meyer, D. 1997, ‘Injuries and accidents among international tourists in Australasia:<br />

scale, causes and solutions’. In: Clift, S. & Grabowski, P. (eds.), <strong>Tourism</strong> and Health: <strong>Risk</strong>s,<br />

Research and Responses, 61-79. London: Pinter.<br />

Phuket Gazette 2006, ‘Phuket Gazette News Archives’, [online] http://www.phuketgazette.com/news/,<br />

(various articles 2004 – 2006)<br />

Wikipedia 2006, ‘2004 Indian Ocean Earthquake’, [online]<br />

http://en.wikipedia.org/wiki/2004_Indian_Ocean_earthquake, accessed 27 August 2006<br />

World <strong>Tourism</strong> Organization (UNWTO) 2003, ‘Safety and Security in <strong>Tourism</strong>: Partnerships and<br />

Practical Guidelines for Destinations’, Madrid: UNWTO, in press<br />

World <strong>Tourism</strong> Organization (UNWTO) 2005, ‘Address by Francesco Frangialli, Secretary-General of<br />

the WTO at the opening of the emergency session of the Executive Council of the WTO’ (Phuket,<br />

Thailand, 1 February 2005), www.world-tourism.org/tsunami/Phuket/DiscoursSG-E.pdf , accessed 18<br />

September 2006<br />

World <strong>Tourism</strong> Organization 2006, ‘Tsunami Recovery Program’, [online] http://www.worldtourism.org/tsunami/eng.html,<br />

accessed 24 August 2006<br />

<strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> – An Authoritative Guide to Managing Crises in <strong>Tourism</strong> 35


CHAPTER 3: NATIONAL RESPONSIBILITIES FOR RISK AND DISASTER<br />

MANAGEMENT<br />

Aim of this Chapter<br />

The aim of this chapter is to examine the responsibilities of national governments in risk and disaster<br />

management, and to identify the structures and frameworks within which tourism operators and<br />

destinations can develop their own capacity to prepare for, respond to, and recover from, crises and<br />

disasters.<br />

<strong>Risk</strong> <strong>Management</strong> at the National Level<br />

In general terms, national governments are responsible for the development, coordination and<br />

implementation of policies relating to risk and disaster management. National governments establish<br />

strategic directions for risk and disaster management processes and, in most countries, provide the<br />

funding for related activities. Strategies are developed by the responsible government departments<br />

hosting multi-agency committees with representation from all key stakeholders.<br />

As a significant global industry, tourism is a significant contributor to the economy of most countries,<br />

but it plays a key economic role in developing countries where it can provide the primary source of<br />

foreign exchange and be a major driver of economic development. As the world’s largest nongovernment<br />

economic sector, tourism is particularly vulnerable to the impact of disasters.<br />

As outlined in Chapter 1, the tourism industry needs to draw to the attention of national governments<br />

the legislative, regulatory, and social environment in which tourism operates, the possible threats to<br />

its continued activity from actual or threatened disasters, and the subsequent effects upon a national<br />

economy of any downturn in tourism activities.<br />

Coordination and Partnerships – A National <strong>Tourism</strong> Council<br />

The World <strong>Tourism</strong> Organization (UNWTO) is a specialized agency of the United Nations. With a<br />

current membership of 150 countries, seven territories and over 300 Affiliate Members representing<br />

the private sector, educational institutions, tourism associations and local tourism authorities, the<br />

UNWTO provides a global forum for tourism policy issues. UNWTO recommends that countries<br />

‘develop a national policy on tourism safety commensurate with the prevention of visitor risks’, and<br />

form national tourism councils with executive committees responsible for risk management in key<br />

areas, according to the needs of each destination. Mixed-sector councils comprising government and<br />

industry participants are essential since many of the necessary actions can and should be<br />

implemented by the private sector. A key committee of a national tourism council would be a national<br />

safety and security committee, responsible for developing and coordinating measures to protect the<br />

tourism industry and its clients at each destination. Government agencies and tourism industry<br />

sectors which should be included on a safety and security committee are:<br />

• National tourism administration/Visitor Board;<br />

• Police;<br />

• Counter-terrorism/security agencies;<br />

• Immigration Department;<br />

• Attorney-General’s Department;<br />

• Customs;<br />

36 <strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> – An Authoritative Guide to Managing Crises in <strong>Tourism</strong>


• Transportation;<br />

• Health;<br />

• Foreign Affairs;<br />

• Disaster <strong>Management</strong>;<br />

• Airlines and transport company associations;<br />

• Hotel associations;<br />

• Tour operators' associations;<br />

• Travel agents' associations;<br />

• Other travel and tourism representatives;<br />

• Consumer groups;<br />

• Retail trade organizations; and<br />

• <strong>Tourism</strong> safety and security-oriented research and documentation centres.<br />

The following example from South Africa demonstrates a working partnership between government<br />

agencies and the tourism industry:<br />

Visitor Safety and Security: The South African Experience<br />

Successful tourism depends on many factors including good infrastructure, the breadth and<br />

diversity of the tourism product, a vibrant and adaptable marketing and promotion strategy, good<br />

information systems and management, competitive prices, and a clean, healthy and safe<br />

environment. In South Africa the government believes that a proper conceptualization of the tourism<br />

industry by policy and decision makers is the key to success. The following approach has been<br />

adopted as the basis of tourism development and promotion. <strong>Tourism</strong>:<br />

• is an unusual product and must be treated as such;<br />

• integrates all life activities of a nation and is inter-ministerial and multi-disciplinary in nature<br />

and should therefore be integrated into all policies and be elevated to national priority<br />

status;<br />

• is basically a service and people orientated industry whose success depends on the<br />

democratic involvement of all;<br />

• tourism development and promotion can only succeed if it is:<br />

o Government-led;<br />

o Private sector (labour and business) driven; and<br />

o Community based.<br />

• works only with a governance framework involving all stakeholders in a partnership for<br />

mobilization and joint application of resources.<br />

The South African Government approaches visitor safety and security from the point of view of a<br />

partnership. A <strong>Tourism</strong> Safety Task Group (TSTG) was formed consisting of the Department of<br />

Environmental Affairs and <strong>Tourism</strong>, the South African Police Service (SAPS), the South African<br />

<strong>Tourism</strong> Board (SATOUR), the <strong>Tourism</strong> Business Council of South Africa (TBCSA), Business<br />

Against Crime (BAC), the Department of Foreign Affairs, and the nine provincial tourism<br />

departments.<br />

(Source: Extracted from a speech delivered by Deputy Minister Hon. Peter R. Mokaba, MP at the<br />

WTO Seminar on <strong>Tourism</strong> Safety and Security, Addis Ababa, Ethiopia, 25 April 1997)<br />

<strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> – An Authoritative Guide to Managing Crises in <strong>Tourism</strong> 37


A National <strong>Tourism</strong> Safety and Security Plan<br />

As tourism is so critical to national economies it should be developed and managed as a matter of<br />

priority, and the development of a National <strong>Tourism</strong> Safety and Security Plan is recommended as a<br />

measure to achieve this. The plan should address the following main areas:<br />

• potential risks to tourism;<br />

• detection and prevention of offences against visitors;<br />

• protection of visitors and residents from illicit drug trafficking;<br />

• protection of visitor sites and facilities against unlawful interference;<br />

• guidelines for operators of visitor facilities in the event of such interference;<br />

• media management;<br />

• information to be provided to the international travel trade on safety and security issues;<br />

• crisis management;<br />

• safety standards and practices in visitor facilities and sites including fire protection, theft,<br />

sanitary and health requirements;<br />

• development of liability rules in visitor establishments;<br />

• safety and security aspects of licensing for accommodation establishments, restaurants, taxi<br />

companies, and tour guides;<br />

• documentation and information on visitor safety to the public, for both outgoing and incoming<br />

travellers;<br />

• national policies on visitor health, including reporting systems for health problems of visitors;<br />

• visitor insurance and travel assistance insurance; and<br />

• research statistics on crimes against travellers.<br />

Whilst in some countries these responsibilities are undertaken by national tourism authorities, other<br />

government agencies and key tourism industry groups should be involved as a major crisis will<br />

require a coordinated effort by them all.<br />

A National <strong>Tourism</strong> Incident Response Plan<br />

Developed following the events of September 11 and updated in April 2005, the Australian National<br />

<strong>Tourism</strong> Incident Response Plan establishes a response framework and actions for the National,<br />

State and Territory governments to pursue in cooperation with industry to ensure rapid, detailed and<br />

targeted responses to incidents with a national impact of the tourism industry. The plan addresses<br />

incident monitoring and management and recovery and recognizes the importance of close<br />

collaboration between governments and industry when responding to major incidents. It ensures that<br />

incidents with a national impact on the tourism industry are managed in a coordinated whole-ofgovernment<br />

way to minimize potential negative economic impacts to the industry. The Government is<br />

committed to working closely with industry to ensure the best possible outcome for the Australian<br />

tourism industry.<br />

The plan includes arrangements to:<br />

• communicate accurate and timely information to:<br />

o<br />

State, Territory and Australian governments and tourism organizations<br />

38 <strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> – An Authoritative Guide to Managing Crises in <strong>Tourism</strong>


o<br />

Australian and international tourism industry (including APEC, PATA and UNWTO)<br />

o domestic and international travelling public<br />

• ensure coordinated policy responses and remedies across governments; and<br />

• coordinate and disseminate information relating to impacts of incidents on the tourism<br />

industry.<br />

Developed as an ‘all hazards’ plan, the National <strong>Tourism</strong> Incident Response Plan will be<br />

implemented to respond to incidents including terrorism or war, disease outbreaks, natural disasters<br />

and other events that may impact negatively on the Australian tourism industry. It contains generic<br />

arrangements for response as specific requirements will vary, depending on the nature and scope of<br />

an event. Importantly, though, it does suggest that each jurisdiction prepare its own plan, consistent<br />

with the national arrangements. The plan is authorized by the <strong>Tourism</strong> Ministers Council, which<br />

includes National, State and Territory <strong>Tourism</strong> Ministers.<br />

Business Continuity Planning Guide for a Human Influenza Pandemic<br />

A further support to the tourism industry by the Australian Government is the recently released<br />

business continuity guide and small business kit designed to provide practical information and<br />

planning tools to assist businesses, including tourism operators, in their preparations for a potential<br />

human influenza pandemic. The guide, Being Prepared for a Human Influenza Pandemic – A<br />

Business Continuity Guide for Australian Businesses, and the kit, A Kit for Small Businesses, were<br />

prepared by the Australian Government in consultation with industry associations.<br />

The guide encourages businesses to rethink their existing contingency strategies to cope with these<br />

types of pandemics and is designed to:<br />

• give an overview of the current situation in regards to avian and pandemic influenza and the<br />

role of the Government;<br />

• allow for consideration of potential impacts of a pandemic on businesses in Australia; and<br />

• provide business continuity planning steps to minimize impact of a pandemic, protect staff and<br />

manage customers and stakeholders.<br />

The kit is a comprehensive planning tool for businesses and provides a detailed overview of the 10<br />

business continuity planning steps for dealing with a pandemic, as well as additional information<br />

resources for business preparedness.<br />

Both can be downloaded from the Department of Industry, <strong>Tourism</strong> and Resources website at<br />

www.industry.gov.au/pandemicbusinesscontinuity.<br />

PATA and Project Phoenix<br />

It struck suddenly, and with devastating consequences for the Asia-Pacific region: SARS - Severe<br />

Acute Respiratory Syndrome - took the lives of more than 900 people. By the time medical<br />

authorities had the disease in check, SARS had also taken a heavy toll on regional economies,<br />

particularly in the travel and tourism sector. As fear of travel grew disproportionately to the actual<br />

risk, billions of dollars and thousands of livelihoods were lost as global consumers chose not to<br />

travel, not only to SARS affected destinations but to countries throughout the region.<br />

Following on from the terror attacks in Bali and the Iraq conflict, the SARS outbreak was the worst<br />

<strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> – An Authoritative Guide to Managing Crises in <strong>Tourism</strong> 39


crisis in the relatively short history of international tourism. Asia-Pacific destinations suffered a<br />

decline of more that 14 million visitor arrivals in the first six months of 2003.<br />

Project Phoenix<br />

The SARS crisis demanded a strong and effective response to combat the fears of global travellers.<br />

On behalf of the industry, PATA created Project Phoenix, a bold initiative to restore consumer and<br />

business confidence in travel to and within the Asia-Pacific region.<br />

PATA appointed a leading public relations company and tourism communications expert to manage<br />

Phoenix which was essentially a communications program to deliver positive images and messages<br />

about the region through TV, print and online media. The end result far surpassed expectations with<br />

Phoenix achieving high levels of consumer response in less than four months. It had three specific<br />

purposes, to:<br />

1. restore consumer confidence in the travel experience;<br />

2. create a consistent single voice for travel and tourism in Pacific Asia; and<br />

3. drive business back to Pacific Asia destinations.<br />

TV Campaigns<br />

Phoenix faced two major communication challenges: first, to persuade scared, sceptical travellers<br />

that it was time to put Asia-Pacific back on their list of travel destinations; second, to gain as much<br />

‘free ink’ as possible by leveraging its relationship with global media companies and creative<br />

publications. It succeeded on both counts. A great example was the ‘Welcome Back’ campaign on<br />

CNN, with US$1 million of airtime, reaching 130 million global households and a TV commercial<br />

that tapped into the hearts of travellers everywhere. Phoenix created campaigns with BBC World<br />

and the National Geographic Channel as well as producing its own SMILES campaign.<br />

Print Ads<br />

As part of the ‘Welcome Back’ campaign, two print ads were rotated in TIME magazine, (US and<br />

International editions) and Fortune magazine, (Europe and Asia editions). Phoenix also produced<br />

print ads as part of the SMILES campaign, one aimed at consumers, the other at trade. Both<br />

provided acknowledgement and brand exposure for Phoenix contributors. These ads were<br />

supported by National Geographic Traveler Magazine, Newsweek, Travel Trade Gazette (TTG<br />

Asia), Travel Weekly, Travel Trade Report and the STS Times.<br />

Publicity<br />

PATA had two basic objectives with its publicity drive. One was to achieve as much positive<br />

coverage as possible, through the efforts of Phoenix and MDK consultants. The other was to use<br />

Phoenix to build PATA’s public profile, to demonstrate to members and the industry at large that<br />

PATA was vigorously embracing its new strategic mandate to be a vocal advocate on the key<br />

issues impacting the region. Phoenix succeeded in generating positive media coverage in<br />

consumer and trade publications in excess of US$2 million.<br />

Promotions<br />

Another Phoenix strategy was to harness the creative energy and support of the 70 PATA Chapters<br />

around the world. In the United States for instance, there are 20 Chapters with more than 3,000<br />

individual members. PATA’s regional office in Europe, Americas and Pacific worked closely with the<br />

Chapters to spread positive messages about Asia-Pacific and restore confidence in travel to the<br />

region.<br />

40 <strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> – An Authoritative Guide to Managing Crises in <strong>Tourism</strong>


Post Phoenix<br />

As campaigns and communication channels were developed through Phoenix, PATA learned<br />

valuable lessons in the process. PATA, the Phoenix contributors and the broader industry are now<br />

better prepared to deal with the next crisis to hit the region.<br />

The fact that so many NTOs and industry players came together in such an unprecedented display<br />

of regional cooperation is itself an encouraging development given the challenges that no doubt lie<br />

ahead.<br />

The New Website<br />

A critical element of Phoenix was the creation of a new consumer website – TravelWithPATA.com.<br />

Its main purpose is to give consumers a source of reliable and accurate information about travel in<br />

Asia-Pacific as well as the travel news, advice, destination guides and many other features. The site<br />

will be a valuable tool for PATA in the event of future setbacks. In times of crisis, such as the SARS<br />

outbreak, consumers are often confronted with misconceptions and myths about the dangers<br />

involved. Often there is nowhere to turn for a credible, independent point of view.<br />

TravelWithPATA.com will ensure global consumers get the real picture when they need it most.<br />

(Source: Extracted from a series of interviews with Peter De Jong, President – PATA; and<br />

www.TravelWithPata.com)<br />

Counter-Terrorism and Consequence <strong>Management</strong><br />

Events since September 11 in New York have required governments to develop measures for the<br />

protection of their citizens, infrastructure and lifelines (power supplies, water and sewerage) from<br />

terrorist attack. Following the London Underground bombings of 7 July 2005, much of the<br />

international counter-terrorism (CT) focus has been on the mass transportation infrastructures of<br />

countries at high risk of attack. On 11 July 2006, seven terrorists’ bombs exploded on evening peak<br />

hour trains in Mumbai, India, killing more than 200 people and injuring over 700.<br />

National governments (and where applicable, state/provincial governments) have addressed the risk<br />

of terrorism in different ways using a variety of organizational structures, but one aspect is common<br />

to all – that the consequences of a terrorist incident will be managed within a disaster management<br />

framework. In the initial stages of a terrorist attack (and the London Underground bombings are a<br />

good example of this), authorities may not know the source of the incident (it may be assumed to be<br />

an explosion due to a gas leak, for example). Disaster management agencies, however, will still<br />

follow, as far as practicable, their normal procedures to carry out search and rescue, medical and<br />

fire-fighting activities. In other words, they will still need to manage the effects or consequences of<br />

the incident. Hence the new phrase in disaster management terminology – consequence<br />

management – to be applied to the use of emergency services or disaster management activities<br />

carried out in response to a terrorist incident. Confirmation of terrorist involvement will, of course,<br />

impose additional law enforcement/security requirements upon activities.<br />

Generally the tourism industry and operators will have no direct role in, or responsibility for, the<br />

development or implementation of counter-terrorism plans (these responsibilities are vested in law<br />

enforcement, defence and specialist agencies of governments); however, given the potential impact<br />

of a terrorist event upon tourism infrastructures and destinations, industry representatives should<br />

liaise with national counter-terrorist committees and ensure that they are familiar with national<br />

arrangements and requirements. They should also provide specialist advice on vulnerable visitor<br />

sites and destinations to authorities. At a local level, tourism operators should liaise with police<br />

regarding protection and consequence measures.<br />

<strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> – An Authoritative Guide to Managing Crises in <strong>Tourism</strong> 41


Some countries (including the United States and Australia) have sought to combine counter-terrorist<br />

and disaster management agencies in the one department to facilitate the coordination of CT and<br />

disaster management activities. In the USA, the Department of Homeland Security (DHS) was<br />

established in June 2002 by President George W. Bush. Tasked with the responsibility for<br />

anticipating, pre-empting and deterring threats to The United States, it is responsible for assessing<br />

the vulnerabilities of the nation's critical infrastructure and cyber security threats and for coordinating<br />

with federal, state, local, and private entities to ensure the most effective response.<br />

The new Department of Homeland Security also absorbed the Federal Emergency <strong>Management</strong><br />

Agency (FEMA) which was established in 1979 as the US Federal Government’s disaster<br />

management agency.<br />

Following the terrorist attacks on the World Trade Centre in 2001, the Australian Government moved<br />

agencies with a CT responsibility to the Attorney-General’s Department, including Emergency<br />

<strong>Management</strong> Australia.<br />

<strong>Tourism</strong> operators, destinations and national associations should always be aware of their own<br />

country’s counter-terrorism plans and arrangements. This includes being aware of current alert levels<br />

(see example from US Department of Homeland Security below), and familiar with any special or<br />

additional measures that should be taken to protect visitors when the alert level is increased.<br />

Although national governments invariably depend upon intelligence-led prevention and preparedness<br />

strategies, the importance of an alert public in detecting and reporting early signs of terrorist activity<br />

is critical.<br />

Figure 9: Example threat level: US Department of Homeland Security<br />

<strong>Tourism</strong> operators should develop their own Standard Operating Procedures (SOPs) as part of a<br />

crisis management plan to identify measures to be undertaken with increased threat levels. National<br />

police and security/defence forces should be consulted for specialist advice. For further information<br />

on the development of SOPs for tourism operators, see Chapter 4.<br />

42 <strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> – An Authoritative Guide to Managing Crises in <strong>Tourism</strong>


Bali and Terrorism: Learning from the Past<br />

Following the bombings of a Kuta nightclub on 12 October 12 2002, government, industry and the<br />

community in Bali were forced to implement a series of reactive strategies to respond to and cope<br />

with the resulting tourism crisis. Recovery of consumer confidence and revenues had been a slow<br />

and laborious effort hindered by repeat terrorist incidents in the national capital of Jakarta, SARS,<br />

the introduction of fee-based visas, and numerous high profile drug trafficking cases involving<br />

foreigners.<br />

From the experience of the Kuta nightclub attacks, local residents had developed a greater<br />

awareness and appreciation of how vulnerable the tourism industry and their livelihoods really had<br />

become. As many migrated or returned to villages others sought alternative employment, education<br />

and training. The export market for craft, furniture and textiles was successfully expanded.<br />

However, with limited personal income or foreign investment, opportunities for economic<br />

diversification were limited. The government and tourism sectors worked to improve existing<br />

security measures, provide safety reassurances and promote a value experience for all visitors.<br />

Using networks, skills, resources and understanding developed post-bombing, the community of<br />

Bali successfully worked on education and environmental campaigns and even contributed to the<br />

recovery efforts following the South Asian tsunami. While no formal disaster management plan was<br />

implemented for the island, local measures and understanding helped to enhance capacity and<br />

resource management.<br />

Despite continued cautionary travel advisories and a changed consumer demographic, by<br />

September 2005 visitor arrivals at the international airport in Bali had passed all previous records.<br />

As tourists were once again enjoying the “Bali experience” on the evening of 1 October 2005, a<br />

second series of terrorist attacks occurred inside eating areas of the popular shopping district of<br />

Kuta Square and nearby Jimberan Bay. Rather than a remotely detonated larger explosive, these<br />

bombs were smaller and concealed inside the perpetrators’ backpacks. Compacted with projectiles,<br />

the explosions caused 22 fatalities (including the three suicide bombers) with a further 123 injured.<br />

While most were Indonesians, the fatalities included four Australians and one Japanese.<br />

Given their recent experience, the emergency response to the incident was relatively effective and<br />

coordinated. As community, industry and international leaders again expressed condemnation,<br />

media and operational centres were established to coordinate information and assistance. While<br />

media attention focused on the damage and destruction, the official spokesperson, General I Made<br />

Mangku Made Pastika, Provincial Head of Bali’s Police Department, (responsible for investigations<br />

following the first series of bombings) provided the known facts, outlined investigations and<br />

highlighted the efforts of government, community and the tourism industry in responding and<br />

maintaining safety and security measures. He emphasized that the change in terrorist tactics to<br />

smaller concealed bombs was a testament to improved security measures and that, in light of<br />

similar attacks in London and Madrid, terrorism had become a global issue.<br />

Unlike the first terrorist bombings in Bali, there was not a mass exodus and immediate decline in<br />

tourist numbers. Bali’s second tourism crisis has been more progressive and gradual. Many<br />

optimistic commentators speculated that perhaps the travelling public had become more tolerant<br />

and accepting of the inevitability of terrorism; however while the second terrorist attacks were less<br />

destructive or severe, they established a suggestion of frequency. As travel advisories were once<br />

again introduced by overseas governments, succeeding months saw regular updates highlighting<br />

further “imminent” terrorist attacks directed at tourists. Domestic and regional tourism promotions<br />

were enhanced but proved insufficient to meet the shortfall in local business and income. Seemingly<br />

content with initial response and visitor reactions, there is limited evidence of money or resources<br />

allocated to medium- or long-term recovery initiatives. Although Bali has continued to win numerous<br />

<strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> – An Authoritative Guide to Managing Crises in <strong>Tourism</strong> 43


international awards for quality of product and service, there appears to have been minimal public<br />

or tangible actions to address concerns regarding risk, safety and security.<br />

Declining numbers once again saw a reduction in air services and routes. The locally established<br />

Air Paradise airline collapsed as a consequence of mounting business costs. As the traditional<br />

market base continues to change, the industry has strived to promote niche markets such as health<br />

tourism and a more culturally based experience. For much of the travelling public Bali has now<br />

become associated with the problems of greater Indonesia including political and social unrest,<br />

terrorism and natural disasters. While the industry has supported local education, training and<br />

scholarship programs, and strived to improve community cooperation and relations, continued<br />

issues of resource use and environmental destruction undermine collaborative efforts. As the<br />

people of Bali demonstrate remarkable resilience and persistence, the island still struggles to<br />

recover from this crisis of consumer confidence.<br />

Although Bali has yet to see a revival of revenues or tourism numbers, the second terrorist attack<br />

reveals the value of learning from past experience. Whether or not as a consequence of improved<br />

safety precautions, the bombing and subsequent damage was significantly reduced in the 1<br />

October 2005 incident. Experience, networks and skills that had been developed assisted in:<br />

• effective coordination of emergency response personnel and resources;<br />

• establishment of an identifiable operations and media centre;<br />

• identification of a credible spokesperson to brief the media;<br />

• improved communications capacity utilizing honesty, authority and placing the incident into<br />

the wider context; and<br />

• greater integration of community, industry and government strategies.<br />

While tourism and industry sustainability is yet to be achieved for Bali, their experience<br />

demonstrates the value of awareness and the processes involved in risk and crisis management. It<br />

should be a continuous, collaborative effort that all stakeholders strive to understand and improve.<br />

Similarly, while tourism may seem relatively resilient, destinations and stakeholders must consider<br />

and plan beyond immediate issues.<br />

(Source: Bali Discovery, 2006; Bali SOS, 2006; and PATA, 2006)<br />

Preventing Organized Crime<br />

At the national level, tourism authorities can assist the actions of police and other agencies in<br />

combating organized crime by supporting actions designed to prevent criminals and weapons<br />

entering their country. This includes endorsing the use of control systems at airports and other ports<br />

of entry.<br />

Another measure in preventing organized crime is to identify the nature of violent or criminal acts and<br />

to design relevant information campaigns for visitors and the domestic and international travel trade.<br />

Organized violent crime is usually highly targeted, even though it may appear random.<br />

When Mexico, for example, realized that it had crime problems related to automobile and coach<br />

travel, it instituted a visitor police highway service, the ‘Green Angels’ (a fleet of radio-dispatched<br />

trucks with bilingual crews operating daily to provide protection, medical first aid, mechanical<br />

assistance, and basic supplies to travellers), and developed and disseminated information materials<br />

for visitors on safe travel by car and coach in Mexico.<br />

44 <strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> – An Authoritative Guide to Managing Crises in <strong>Tourism</strong>


<strong>Tourism</strong> and Child Protection<br />

While tourism has long been acclaimed for its employment, income and investment-generating<br />

capacity, the darker side of tourism also reveals exploitation of the weak and vulnerable. Sex<br />

tourism, trafficking, pornography and child prostitution are forms of organized crime and are<br />

unfortunately prevalent in many popular tourist destinations, particularly in developing nations.<br />

Although such activities are generally considered illegal both in the source market and the host<br />

community, victims have rarely been in a position to take any meaningful action.<br />

The United Nations Convention on the Rights of the Child (Articles 34 and 35) says that all children<br />

should be protected from all forms of exploitation and sexual abuse including the exploitative use of<br />

children in prostitution, pornography and trafficking. Consistent with this convention many national<br />

governments are now taking a proactive approach towards increased awareness and overt child<br />

protection. As a collaborative effort between government, industry and communities, a number of<br />

policies and campaigns have been implemented to reduce the violence, exploitation and abuse of<br />

women and children perpetrated by tourists and foreigners. Supported by a variety of multinational<br />

laws and repatriation agreements, successful conviction can carry severe penalties.<br />

Programs such as Child Wise <strong>Tourism</strong>, currently operating in Cambodia; Indonesia; Lao PDR;<br />

Myanmar; The Philippines; Thailand; and Viet Nam help to educate workers within the tourism<br />

sector and other travellers, how to identify and report situations where children may be at risk.<br />

Irrespective of international borders, foreign relations or cultural difference, such schemes<br />

demonstrate how collaborative endeavours within tourism can actually play a vital role in reducing<br />

risk and vulnerability.<br />

(Source: Child Wise, 2006)<br />

<strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> in the Pacific Region<br />

A review of the types of risk that need to be managed in the Oceania region (Wilks, 2003) revealed<br />

that many Pacific Islands have a similar profile with no serious safety or security concerns, some<br />

petty crime, cyclones and seismic activity, and a range of possible infectious diseases (most notably<br />

dengue fever, hepatitis A and typhoid fever). Malaria was noted for the Solomon Islands and<br />

Vanuatu, while Japanese B encephalitis was mentioned for the Northern Marianas. The report<br />

concluded that the range of infectious diseases prevalent in the region highlights the need for all<br />

travellers to carry appropriate travel health insurance, especially cover for emergency medical<br />

evacuation. In many smaller and remote destinations adequate medical care will not be available<br />

should a visitor require emergency treatment.<br />

<strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> – An Authoritative Guide to Managing Crises in <strong>Tourism</strong> 45


Disasters in Asia and the Pacific<br />

Many Asian countries, especially those in South East Asia, are densely populated and prone to<br />

disasters which have a severe and negative effect upon their economies and development. Countries<br />

with long coastlines are repeatedly affected by cyclones (typhoons); floods are an annual feature in<br />

the region claiming lives and destroying huge areas of land in India, Indonesia and Bangladesh; flash<br />

floods are common in hilly and mountainous regions; seismic disturbances are very common in Asia;<br />

and in India the entire sub-Himalayan region is prone to earthquakes.<br />

Landslides are increasingly common in hilly and mountainous regions causing extensive damage to<br />

roads, bridges, human dwellings, and land as well as loss of human lives. Volcanic eruptions have<br />

recently caused significant death and destruction. Diverse agro-climactic conditions account for the<br />

frequent occurrence of droughts in India, Pakistan, Burma and Indonesia, while regular epidemics of<br />

enteric diseases such as cholera, typhoid, respiratory infections, and vector-borne diseases are<br />

common. Cyclones and floods are seasonal events in the Pacific, while volcanic activity and<br />

earthquakes are additional and significant sources of risk to communities.<br />

Disasters in Asia and the Pacific are also caused by civil disturbance, terrorism and transportation<br />

accidents.<br />

Transport Incidents<br />

Transport incidents such as bus crashes, train derailments and ferry accidents are relatively routine<br />

emergencies throughout the developed world, yet when victims include a significant number of<br />

international visitors they generate a high level of media attention. The degree of media coverage<br />

often relates to the frequency, scale, and severity of the incident (particularly the number of injuries<br />

and fatalities); however, such publicity often serves to engender negative destination images and<br />

perceptions.<br />

Although tourism and destination officials are not directly responsible for these incidents, the<br />

circumstances often warrant close scrutiny of accepted safety conditions and standards. Recent<br />

high profile bus crashes in Egypt (January 2006) have been attributed to speed and poor road<br />

conditions, while the visitor-chartered ferry that capsized off Bahrain killing 44 people in March 2006<br />

was reportedly unstable and unlicensed. Similar incidents cite causes such as overcrowding,<br />

insufficient safety equipment, poor operational conditions and general negligence. Ferry incidents<br />

and motorbike accidents had become so common in Thailand during 2005 that the Australian<br />

Government began officially to warn potential travellers of the hazards involved in using these forms<br />

of transport.<br />

While many countries have legislated minimal safety standards, compliance and maintenance is<br />

often the responsibility of individual operators. As part of a proactive risk management process,<br />

individual businesses should endeavour to review and implement best practice safety procedures,<br />

as government and industry should pressure dangerous operators to conform through enforcement<br />

of safety codes and legal requirements.<br />

Common preventative strategies for businesses and operators include:<br />

• regular safety audits of vehicles/equipment/facilities;<br />

• scheduled inspection, maintenance and repairs;<br />

• employee safety training/certification;<br />

• reviewing and adherence to minimum safe operational conditions eg, maximum capacity,<br />

46 <strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> – An Authoritative Guide to Managing Crises in <strong>Tourism</strong>


safety equipment, evacuation procedures, environmental conditions; and<br />

• insurance (requires safety compliance).<br />

Resumption of tourism operation and business following high profile transport accidents is often<br />

dependent on the extent of operator culpability and the effectiveness of subsequent public relations.<br />

Crisis communications should be timely, express appropriate sympathy/empathy/sensitivity and be<br />

based on the established facts. Where possible, the incident should be contextualized within a<br />

broader history or record for safety and visitor satisfaction. There should also be adequate victim<br />

and family support. Effective recovery usually requires a demonstrated ability to communicate and<br />

address the safety concerns of prospective clientele.<br />

(Source: ABC News, 2006; BBC News, 2006; and DFAT, 2006)<br />

National Disaster <strong>Management</strong> Arrangements in Asia and the Pacific<br />

National Disaster <strong>Management</strong> Councils exist in one form or another in most Asian and Pacific<br />

nations where the past decade or so has seen a paradigm shift from relief and response activities to<br />

a comprehensive disaster risk management framework. In general, disaster management and risk<br />

reduction strategies are linked to national and international drivers including economic development<br />

and poverty reduction strategies and the UN Millennium Development Goals.<br />

National Disaster <strong>Management</strong> Councils (or equivalent agencies) provide advice to governments,<br />

develop policies and strategic directions in disaster management, coordinate activities, and provide<br />

frameworks within which plans can be developed and implemented. In general, disaster management<br />

responsibilities are allocated to national, state/provincial, district and local governments. The main<br />

responsibilities of the national governments are to develop and maintain relevant legislation, allocate<br />

responsibilities, provide national security, stability and prosperity and to provide strategic directions.<br />

The district and local level governments are normally tasked to provide services, amenities and<br />

controls for the health and well-being of their communities.<br />

The systems for disaster management in Asia follow similar general patterns but there is no<br />

consistent model. However, the recent and widespread shift from response and relief to communitybased,<br />

comprehensive disaster risk management programs includes a focus upon partnerships<br />

between national and local governments and non-governmental organizations to promote risk<br />

reduction and disaster preparedness. The requirements and input of tourism operators and<br />

associations are consistent with this multi-focus, community-based approach to disaster and crisis<br />

management.<br />

Examples of national disaster management arrangements in Asia and the Pacific include:<br />

• The Philippines’ National Disaster Coordinating Council which was established by Presidential<br />

decree in 1978 as the highest policy-making body on disaster-related matters. There are also<br />

regional and several levels of local coordinating councils.<br />

• Viet Nam is subject to flood, typhoon and drought and these are being addressed through the<br />

Second National Strategy for Disaster Mitigation and <strong>Management</strong> (2001–2010) which has<br />

identified mitigation measures and principles and the key tasks of the National Committee for<br />

Disaster Mitigation and <strong>Management</strong>.<br />

• Thailand has a National Civil Defence Committee as well as plans for disaster management at<br />

each level, with support from the national level. In October 2002 a new department of Disaster<br />

Preparedness and Mitigation was established in the Ministry of Interior, consolidating<br />

functions previously undertaken by several departments.<br />

<strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> – An Authoritative Guide to Managing Crises in <strong>Tourism</strong> 47


• The Government of Bangladesh has disaster management committees at the national and<br />

field levels and a Disaster <strong>Management</strong> Bureau and Department of Food and Disaster<br />

<strong>Management</strong>. Their Comprehensive Disaster <strong>Management</strong> Program (CDMP) is based upon a<br />

disaster risk management culture with programs including partnership development,<br />

community empowerment, capacity-building, research information management, and<br />

response management. CDMP seeks to ensure that disaster management is integrated within<br />

the core business of government, with strong links with development planning. Local Disaster<br />

Action Plans have been developed for 900 communities.<br />

• The Cook Islands has a National Disaster Council as the focal point for all disaster<br />

management activities with a National Disaster <strong>Management</strong> Office as the secretariat of the<br />

NDC. The Outer Islands Island Secretary and Island Council Mayor are responsible for the<br />

development of disaster management activities on their respective islands. The island system<br />

is modelled on the national system to ensure uniformity. The National Disaster Council assists<br />

them by providing guidance, policy advice and resources.<br />

Comprehensive Disaster <strong>Management</strong> Programs (CDMPs) jointly funded by the United Nations<br />

Development Program (UNDP) and the Department for International Development (DFID) have been<br />

launched in many Asian countries since November 2003. The United Nations International Strategy<br />

for Disaster Reduction (UNISDR) underpins the development of disaster management programs in<br />

Asia and the Pacific.<br />

The Asian Disaster Preparedness Centre<br />

Training, education and support are available through the Asian Disaster Preparedness Centre<br />

(ADPC) in Bangkok (http://www.adpc.net). Established in 1986 with financial assistance from the<br />

United Nations Development Program (UNDP) at the recommendation of the United Nations Disaster<br />

Relief Organization (now the Office for the Coordination of Humanitarian Affairs - OCHA), ADPC is a<br />

non-profit organization supporting the advancement of safer communities and sustainable<br />

development through the implementation of programs and projects which reduce the impact of<br />

disasters upon countries and communities in Asia and the Pacific by:<br />

• developing and enhancing sustainable institutional disaster risk management capacities,<br />

frameworks and mechanisms, and supporting the development and implementation of<br />

government policies;<br />

• facilitating the dissemination and exchange of disaster risk management expertise,<br />

experience and information; and<br />

• raising awareness and enhancing disaster risk management knowledge and skills.<br />

The Centre is staffed by professionals from many different countries and draws upon the expertise<br />

and experience of some 350 associates and a network of more than 4,300 alumni spread across 75<br />

countries.<br />

The Centre’s geographical area of interest embraces South East and East Asia, the Indian subcontinent<br />

and the Pacific. ADPC works closely with local communities, local and national<br />

governments and regional bodies to raise awareness, promote appropriate policies, establish<br />

sustainable institutional mechanisms, enhance knowledge and skills, and facilitate the exchange of<br />

experience and expertise on risk, disaster and crisis management. ADPC programs are diverse in<br />

application, address all types of hazards, and cover all aspects of the crisis and risk management<br />

spectrum from prevention and mitigation, through preparedness and response, to rehabilitation and<br />

reconstruction.<br />

48 <strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> – An Authoritative Guide to Managing Crises in <strong>Tourism</strong>


<strong>Tourism</strong> Disaster Response Network<br />

Travel and <strong>Tourism</strong> Governors at a meeting of the World Economic Forum in January 2005<br />

considered the impact of disasters following the South Asian tsunami of December 2004. The<br />

Governors subsequently established a cross-sectoral task force and commissioned a feasibility study<br />

to assist in the development of a tourism disaster response network. The goals of the study are to:<br />

• produce a global risk map, identifying which risks are most likely to occur, and where they are<br />

likely to occur;<br />

• identify (map) current operational travel and tourism disaster response networks. This task<br />

should identify duplications of effort and capabilities, and identify gaps in priority capabilities;<br />

• provide recommendations and proposals for what should be done to create an effective early<br />

warning disaster response network, able to respond in a timely way to the most likely future<br />

risks; and<br />

• suggest possible next steps and the resources required for the implementation of the network.<br />

In its survey of existing disaster recovery networks and resources available to assist the tourism<br />

industry in anticipating, planning for, reacting to and recovering from a disaster, it was noted that the<br />

tourism industry needs to improve its proactive communication strategies with governments and the<br />

media as there is currently limited understanding of the critical importance of the tourism sector in<br />

supporting community disaster recovery.<br />

Chapter Summary<br />

This chapter identifies national governments as responsible for the development, coordination and<br />

implementation of policies relating to risk and disaster management, for establishing strategic<br />

directions for risk and disaster management processes and funding related activities. It identifies the<br />

need for national tourism councils to be involved in risk and disaster management and highlights the<br />

benefits of an effective partnership between government agencies and the tourism industry. Critical<br />

elements of a National <strong>Tourism</strong> Safety and Security Plan and a National <strong>Tourism</strong> Incident Response<br />

Plan are examined and the need for business continuity plans identified. Arrangements to prepare for<br />

and respond to a terrorism event are discussed, and an overview of national disaster management<br />

arrangements in Asia and the Pacific provided. The chapter concludes with an overview of the<br />

proposed <strong>Tourism</strong> Disaster Response Network.<br />

References<br />

ABC News <strong>Online</strong> 12 January 2006, ‘Fatigue suspected in Egypt bus crash’, [online]<br />

http://www.abc.net.au/news/newsitems/200601/s1546139.htm, accessed 21 July 2006<br />

Australian Standards Association/New Zealand Standards Association 1995, ‘AS/NZS 4360-1995<br />

<strong>Risk</strong> <strong>Management</strong>’<br />

BBC News 31 March 2006, ‘Many die in Bahrain boat disaster’, [online]<br />

http://news.bbc.co.uk/1/hi/world/middle_east/4862948.stm, accessed 21 July 2006<br />

Bali Discovery 2006, ‘Bali Update’, Archive http://www.balidiscovery.com/update/archive.asp,<br />

(various articles 2002-2006)<br />

Bali SOS 2006, ‘Bali Emergency Network’, [online] http://www.balisos.com<br />

<strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> – An Authoritative Guide to Managing Crises in <strong>Tourism</strong> 49


Child Wise 2006, [online] http://www.childwise.net/preventing-child-sex-tourism.php, accessed 23<br />

August 2006<br />

Department of Foreign Affairs and Trade (DFAT) 2006, ‘Travel Advice for Thailand. Australian<br />

Government’, [online] http://www.smartraveller.gov.au/zw-cgi/view/Advice/Thailand, accessed 21July<br />

2006<br />

Pacific Asia Travel Association (PATA) 2006, ‘Bali Information and Updates’, [online]<br />

http://www.pata.org/patasite/index.php?id=1300, accessed 13 June 2006<br />

Wilks, J. 2003, ‘Destination risk management in Oceania’. In: Cooper, C. & Hall, C.M. (eds.),<br />

Regional <strong>Tourism</strong> Handbook – Oceania. London: Channel View, in press.<br />

50 <strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> – An Authoritative Guide to Managing Crises in <strong>Tourism</strong>


CHAPTER 4: CRISIS MANAGEMENT FOR TOURISM OPERATORS AND<br />

DESTINATIONS<br />

Aim of this Chapter<br />

The aim of this chapter is to provide a framework within which tourism destinations and individual<br />

businesses/organizations can prepare for, and manage the effects of, crises.<br />

While the main focus of this chapter is on the development and implementation of crisis management<br />

strategies for a destination, the same concepts and principles apply to tourism<br />

businesses/organizations and can be adapted to their situation.<br />

Introduction<br />

As noted in the conclusion to Chapter 2 of this guide, regardless of how effective the tourism risk<br />

management processes might be, crises will still affect organizations, just as disasters will still impact<br />

upon communities and the tourism facilities within them. Residual risk is the term given to the risk<br />

remaining after the implementation of risk treatment measures. It’s an acknowledgment of the fact<br />

that disasters and crises will still occur and that measures must be undertaken to deal with them.<br />

The accepted method of dealing with residual risk is to apply the management strategies of<br />

prevention/mitigation, preparedness, response and recovery. It is important to note that these are not<br />

phases of a crisis, but strategies for their management.<br />

Despite the inevitability of disasters and crises, destinations, operators and the tourism industry can<br />

minimize disruption and facilitate the return to normal operations with the application of efficient and<br />

effective management strategies.<br />

Visitors have demonstrated a high, but nevertheless reasonable, level of expectation of the measures<br />

that destinations and operators should take to ensure their protection. Poorly managed crises<br />

invariably result in loss of public confidence, widespread and very public condemnation, excessive<br />

media attention and potentially, expensive and protracted litigation. Destinations and tourism<br />

operators will inevitably be held responsible by visitors for their level of preparedness, and for their<br />

ability to respond to and recover from a business crisis or the effects of a community disaster.<br />

Business crises are events which may:<br />

• hinder normal business practices and operations, including the provision of services to<br />

visitors;<br />

• create a high degree of stress and trauma for visitors, staff, and the community;<br />

• compromise the reputation of the tourism operator or destination;<br />

• produce significant difficulties in the coordination of activities;<br />

• pose major communication and information management problems;<br />

• adversely affect the local or national economy;<br />

• be protracted events; and<br />

• generate intense media and public scrutiny.<br />

<strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> – An Authoritative Guide to Managing Crises in <strong>Tourism</strong> 51


The Four Crisis <strong>Management</strong> Strategies<br />

Originally developed by the United Nations Disaster Relief Organization (UNDRO) more than thirty<br />

years ago, the comprehensive crisis management strategies of prevention/mitigation, preparedness,<br />

response and recovery (PPRR) have been widely adopted and provide tourism destinations and<br />

businesses/organizations with a logical, methodical and interlinked approach to crisis management<br />

which has stood the test of time. Although there are variations on the PPRR theme in use (for<br />

example, the four Rs – reduction, readiness, response and recovery), prevention/mitigation,<br />

preparedness, response and recovery is the terminology used in current risk management<br />

processes, and it’s the accepted terminology in disaster management. It is appropriate for this guide<br />

to use PPRR to be consistent with current practices.<br />

PPRR are crisis management strategies, not stages of crisis management. Importantly,<br />

prevention/mitigation and preparedness are continuous processes with no end point. Once a crisis<br />

management plan has been developed, for example, staff have to be trained to the plan, the plan has<br />

to be tested and then revised in light of lessons learned, and staff trained and tested to the revised<br />

plan: planning is an ongoing process.<br />

1. Prevention/Mitigation<br />

Given that these four crisis management strategies are the treatments of residual risk in a risk<br />

management process, risk treatment measures designed to prevent or mitigate (reduce the effects<br />

of) crises should have already been identified and implemented (see Chapter 2). As part of the<br />

process of monitoring and review, however, these should be revisited and new sources of risk to the<br />

tourism business/organization or destination identified and the implementation of risk treatment<br />

measures assessed.<br />

For both the tourism business/organization and destination, an added tool in strategic business<br />

management is the SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis which provides<br />

a structure to identify an organization’s internal strengths and weaknesses, and external<br />

opportunities and threats.<br />

A SWOT analysis used when developing plans and procedures to cope with crises, should focus<br />

upon: strengths, including the resources and support available within a tourism business/organization<br />

and destination to deal with a crisis; weaknesses, the factors which will affect the ability of each to<br />

cope with a crisis and its aftermath; opportunities to enlist government and community involvement<br />

and support to tourism; and threats including the sources of risk to a tourism facility and destination.<br />

(These will already have been identified as part of the tourism risk management process where the<br />

identification of hazards, sources of risk, is a key step in the process. See Chapter 2 for details.)<br />

Occupational Health and Safety<br />

A significant prevention and mitigation measure for crises is to have in place the systems and<br />

procedures necessary to protect the health and safety of visitors and staff. In many countries,<br />

legislation establishes the requirements for occupational health and safety measures to be developed<br />

and maintained, and destinations should identify health and safety requirements to protect visitors<br />

and tourism personnel consistent with national legal requirements, and advise tourism operators on<br />

the development of appropriate plans and procedures.<br />

Consultation between the destination and relevant government departments and emergency services<br />

will ensure that appropriate measures, which comply with national regulations, can be developed and<br />

implemented. Such inter-agency cooperation will also promote an integrated approach to tourism-<br />

52 <strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> – An Authoritative Guide to Managing Crises in <strong>Tourism</strong>


elated health and safety and reinforce the need for government and community agencies to support<br />

tourism operations and initiatives.<br />

Whilst legislation relating to occupational health and safety varies from country to country, common<br />

elements generally include:<br />

• liability (being legally responsible for actions and activities) is a two-way street with both the<br />

employer and employees being liable for their actions;<br />

• duties of employers and employees and penalties for non-compliance;<br />

• the provision of a work environment that is safe and without risk to health;<br />

• the provision of adequate facilities;<br />

• maintenance of a safe means of access and egress;<br />

• ensuring the absence of risks in connection with handling of plant and substances;<br />

• development of procedures for emergencies within the facility or workplace;<br />

• adequate training of staff and testing of plans and procedures; and<br />

• provision of information in appropriate languages.<br />

Destinations should advise tourism businesses/organizations to develop, as a minimum, Standard<br />

Operating Procedures (SOPs) for their facilities to address:<br />

• evacuation;<br />

• building fire;<br />

• bomb, chemical, biological, radiological threat;<br />

• suspected mail bomb/letter bomb;<br />

• civil disorder/illegal occupancy;<br />

• armed or dangerous intruder;<br />

• hazardous material spill;<br />

• gas leak or other noxious exposure;<br />

• building collapse;<br />

• medical emergency; and<br />

• external emergencies – storm, flood, earthquake, tsunami, landslide, etc.<br />

Again, regional and local emergency services personnel can provide expert advice on the<br />

development of these procedures and this provides an important opportunity for an effective<br />

partnership between tourism and community agencies.<br />

2. Preparedness<br />

This strategy includes the development of plans and programs, systems and procedures, training and<br />

testing to ensure that when crises do occur, resources (personnel and equipment) can be mobilized<br />

and deployed to best effect to reduce the effects of the crisis and to facilitate the return to normal<br />

tourism operations.<br />

<strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> – An Authoritative Guide to Managing Crises in <strong>Tourism</strong> 53


A key part of crisis preparedness for destinations is the establishment of networks and liaison with<br />

relevant government departments and community agencies. Just as Chapter 2 identifies each<br />

tourism operator and destination as part of the disaster management community, so each destination<br />

should develop and maintain an effective working relationship with those departments and agencies<br />

with which it will cooperate during a crisis, and which may provide advice and assistance during<br />

tourism crisis response and recovery.<br />

The Planning Committee<br />

The first step in preparedness is the establishment of a tourism crisis planning committee. While a<br />

tourism operator’s committee will ideally involve representatives from every section of the<br />

organization, the planning committee for a destination should include representation from all key<br />

stakeholder organizations as each will have a different perspective and different knowledge and skills<br />

to contribute. The destination should also invite participation from relevant government departments<br />

and community agencies to reinforce the need for integrated crisis response and recovery processes<br />

for regional tourism. These committees are likely to form the core of subsequent crisis management<br />

teams.<br />

The planning process will be based upon the sources of risk to the tourism destination which were<br />

identified as part of the risk management process (see Chapter 2). A planning committee should<br />

meet regularly (every three months if possible) and will be responsible for the:<br />

• development, production, dissemination and review of tourism crisis management plans and<br />

procedures;<br />

• allocation of crisis management roles and responsibilities;<br />

• identification of training needs;<br />

• organization of training programs, including induction programs for new staff;<br />

• development and conduct of exercises (mock crises), annually as a minimum;<br />

• debriefing following exercises and crisis plan activations; and<br />

• monitoring, evaluation and amendment of plans and procedures.<br />

<strong>Tourism</strong> Crisis <strong>Management</strong> Planning<br />

No two crises will ever be the same. Each crisis will have a life of its own and will generate different<br />

problems requiring different solutions. What is needed, then, is a generic tourism crisis management<br />

plan: one which will contain a single set of crisis management arrangements which will be applied to<br />

all crises which may impact upon a tourism destination or business/organization.<br />

However, a best practice crisis plan is only a starting point: the ability of a destination or tourism<br />

operator to manage a crisis will always be dependent upon the knowledge and skills of those<br />

responsible for the plan’s implementation, and their abilities and flexibility to adapt to the changing<br />

needs and situations that crises produce.<br />

A tourism crisis management plan should:<br />

• describe activation procedures - the means of alerting personnel and activating the crisis<br />

management system;<br />

• allocate crisis management roles and responsibilities;<br />

54 <strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> – An Authoritative Guide to Managing Crises in <strong>Tourism</strong>


• identify control and coordination arrangements, including the facilities (operations centre) and<br />

structure for managing a crisis;<br />

• include standard procedures for the response to, and recovery from, crises;<br />

• identify operational information management requirements, including the assessment of the<br />

effects of the crisis upon facilities, personnel and operations;<br />

• establish communications methods - a fail-safe system of providing warnings and information<br />

to visitors and staff, and for communicating with regional tourism organizations and<br />

emergency services agencies; and<br />

• describe public relations and media management arrangements (for details see Chapter 5).<br />

Crisis management arrangements should ensure:<br />

• the safety of all persons residing within, working at, or visiting a tourism facility or destination;<br />

• minimal disruption to regional tourism operations, visitors, staff and surrounding communities;<br />

and<br />

• compliance with applicable legislation, regulations and guidelines.<br />

The planning committee should take account of the fact that a crisis may be protracted, and that<br />

personnel may be required to undertake crisis management roles and responsibilities over many<br />

days. Will there be sufficient trained personnel available? If not within a destination or organization,<br />

what options are available?<br />

The basis of all crisis management planning is a series of ‘what if’ questions for the planning<br />

committee to address:<br />

• What if so-and-so happened?<br />

• What does this mean to us as a destination or tourism operator?<br />

• What are the implications for our regional operations and for the attitudes and patterns of<br />

travellers?<br />

• What must we do as a result of this to protect people and our businesses, and to restore and<br />

maintain confidence in our operations and facilities?<br />

Criteria for Crisis Control Personnel<br />

A planning committee may find the following general criteria useful when selecting personnel to<br />

undertake critical roles in the crisis management team:<br />

• Can the person keep calm, think clearly, and make sound decisions when under crisis<br />

pressure?<br />

• Does the person readily accept responsibility?<br />

• Is the person willing to undergo training and participate in regular exercises?<br />

• Does the person have an understanding of his or her own limitations?<br />

• Is the person able to respond quickly and adapt to the demands of a changing situation?<br />

<strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> – An Authoritative Guide to Managing Crises in <strong>Tourism</strong> 55


Training of Staff<br />

Crises inevitably require personnel to step outside their normal day-to-day roles and responsibilities<br />

and to carry out tasks which are far less familiar. To make it even more difficult, not only are many of<br />

the tasks unfamiliar, but they must be carried out in the highly stressful environment which crises<br />

produce. For these reasons it is very important that personnel be trained for and regularly tested in<br />

their crisis management tasks. Personnel also need the opportunity to practise their tasks as skill<br />

levels will deteriorate rapidly, even given the best of training, if regular practice is not undertaken.<br />

A planning committee should identify the specific crisis management training needs of personnel and<br />

ensure that appropriate initial and ongoing training is provided. This must also include relevant<br />

induction programs for new staff.<br />

Testing Plans and Personnel – Crisis <strong>Management</strong> Exercises (Mock Crises)<br />

The fundamental purpose of training and exercising is to improve the capacity to respond efficiently<br />

and effectively in times of crisis. Crisis management exercises can:<br />

• reveal planning weaknesses;<br />

• expose resource gaps;<br />

• clarify roles and responsibilities;<br />

• improve individual performances;<br />

• build confidence;<br />

• develop proficiency;<br />

• test plans, systems and procedures; and<br />

• foster cooperation between tourism operators and destinations.<br />

Most importantly, whilst exercises can’t exactly duplicate the stressors imposed by crises, they do<br />

provide an opportunity to assess the ability of personnel to perform under stressful conditions. An<br />

exercise will also identify whether or not plans, systems and procedures can withstand the same<br />

crisis pressure.<br />

That's what you need to know. Crisis management is not about being able to function in normal<br />

surroundings or circumstances. It's about being able to function effectively under crisis pressure, in<br />

abnormal surroundings or circumstances - and not everyone, or every system, can do so.<br />

Exercises provide the opportunity for personnel from the visitor region to work together and to<br />

develop an understanding of how others operate, their priorities and systems, and to develop an<br />

effective working relationship.<br />

Exercise Options<br />

The starting point of exercise management is to identify what exactly it is that you want to test and<br />

what is the best way to go about it. Destinations may choose to access personnel skilled in exercise<br />

development and management in order to maximize the benefits. Types of exercise include:<br />

56 <strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> – An Authoritative Guide to Managing Crises in <strong>Tourism</strong>


• Discussion Exercises<br />

A discussion exercise produces a situation and crisis management problems for participants to<br />

address. It depends upon a highly skilled facilitator and is a very effective and cost efficient method of<br />

testing plans, procedures and personnel. Whilst it does not produce all the pressure of crisis<br />

conditions, participants are required to think and react under some pressure.<br />

• Functional exercises<br />

These are exercises which allow participants to practise information processing, resource<br />

management and decision-making skills in a crisis operations centre environment. These test the<br />

management of events and expose members of the crisis management team to considerable<br />

pressure and they are critical to developing a high level of preparedness to respond to crises.<br />

Importantly, though, exercises need not always be a formal procedure necessitating planning,<br />

development and the use of a skilled facilitator. Destinations can use crises experienced by other<br />

destinations to consider their own level of preparedness. Such informal exercises are based upon<br />

personnel discussing the following simple questions against a given scenario:<br />

• What would we do if that happened in our region?<br />

• What would be the implications of such a crisis for our business operations?<br />

• How would it affect visitors and potential travellers?<br />

• What would we do about it?<br />

• What are the problems which we would have to face?<br />

• How would media and public relations issues be managed?<br />

• Do we need any additional training, equipment or other resources to manage such a crisis?<br />

• How would tourism here be affected if it happened at a nearby destination?<br />

Training and exercising should be ongoing processes if you are to develop and maintain the high<br />

level of preparedness necessary for an efficient and effective response to a crisis. That depends, at<br />

least in part, on the development of an appropriate attitude: one which identifies the need for crisis<br />

preparedness activities to become a part of normal business routine, not merely isolated or<br />

occasional measures adopted to satisfy a formal requirement.<br />

The <strong>Tourism</strong> Crisis Planning Process<br />

Crisis planning is a PROCESS. A written plan is just one outcome of the ongoing process, but it’s not<br />

an end point. A planning committee cannot rest on its laurels once the plan has been produced.<br />

Personnel must be trained and tested; plans must be regularly tested, reviewed and updated.<br />

Destinations should learn from the crises which other destinations experience and incorporate those<br />

lessons into their own preparedness activities.<br />

A crisis management plan will get you started in a crisis. Planning must continue during crisis<br />

response and recovery operations, when the crisis management team will have to develop short-term<br />

plans for the following few hours of operation (known as tactical plans) and longer-term plans for the<br />

following 24 to 48 hours (strategic plans). As the team assesses the situation and decides upon<br />

essential tasks and priorities in response and recovery, so plans have to be developed for their<br />

implementation. This is not a complicated process, but a normal business approach where a<br />

management team determines what needs to be done and how they will go about it.<br />

<strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> – An Authoritative Guide to Managing Crises in <strong>Tourism</strong> 57


Proactive Planning: An Example of Best Practice<br />

Although most of the tourism industry would be familiar with cases of poor or inadequate risk<br />

management, it is often considered difficult to find examples of good crisis management planning.<br />

In practice, effective crisis management prevents or minimizes a potential crisis with limited adverse<br />

public or consumer awareness. This implies appropriate measures of mitigation, preparation and<br />

communication. The ideal or “best practice” approach to risk and crisis management is proactive,<br />

strategic and holistic and designed to coordinate and manage a diverse range of tourism<br />

stakeholders.<br />

The essence to achieving such an approach is premised on knowledge, understanding and<br />

familiarity. A valuable and useful strategy for any planning process is to learn from past lessons and<br />

experiences, whether local or international. In their article A case study of best practice—<br />

VisitScotland’s prepared response to an influenza pandemic, Page, Yeoman, Munro, Connell and<br />

Walker (2005) demonstrate how VisitScotland, the Scottish National <strong>Tourism</strong> Organization, used<br />

the incidence of foot-and-mouth disease and systematic scenario planning exercises to develop<br />

proactive contingency plans and response strategies for the looming issue of flu pandemic.<br />

Learning from Foot-and-Mouth<br />

While commonly described as an agricultural, farming or health crisis, the outbreak of foot-andmouth<br />

disease in the United Kingdom had significant impacts on the tourism industry. Consumer<br />

uncertainty and concern led travellers to postpone holidays, cancel trips or choose alternative<br />

destinations. Media images of afflicted livestock, local precautions and stringent travel advices<br />

essentially resulted in reduced tourist numbers and associated revenues. The effect of foot-andmouth<br />

disease on Scotland’s tourism economy was profound, and according to this paper “ensured<br />

that VisitScotland would learn from those experiences for future crises” (p374).<br />

A Potential Flu Pandemic<br />

With growing media attention and awareness dedicated to the spread of Avian Influenza (Bird Flu)<br />

during late 2005, this report outlines how the potential mutation to a global flu pandemic was<br />

identified as a significant issue or external environmental risk likely to impact on the Scottish tourism<br />

industry. Consistent with a systematic risk management process the potential nature, scope and<br />

extent of the issue was researched (in tandem with the Scottish Executive’s Department of Health)<br />

to evaluate the priority of the risk. Determined a high priority issue, scenario planning exercises<br />

were subsequently adapted and developed “to understand the challenges to plan for the type of<br />

actions to prepare for a crisis” (p362).<br />

The Scenario Planning<br />

Based on a variety of realistic scenarios relating to severity and duration, this planning employed a<br />

triangulation of methods to model the diverse implications of an influenza pandemic, including a<br />

quantification of expected disruptions and changes to consumer behaviour. Using established<br />

methodologies, scenarios were developed over a successive period of stakeholder consultation and<br />

iteration. Industry based workshops were then used to further map collective themes and issues to<br />

identify potential outcomes of these scenarios.<br />

The principal outcomes outlined the implications for Scottish tourism relating to issues including;<br />

market reactions and changes, transportation, travel displacement, resources, employment and<br />

staffing, service disruption and civil unrest. From these issues, a number of key or critical issues<br />

were identified to help model anticipated information flow, responsibilities and relevant<br />

stakeholders. Developed as a guide of “principal actions and approach” to the outbreak of a global<br />

pandemic, this exercise has since assisted with tangible contingency planning, business continuity<br />

planning, and the consideration of appropriate response strategies for the Scottish tourism sector.<br />

58 <strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> – An Authoritative Guide to Managing Crises in <strong>Tourism</strong>


Best Practice<br />

Although such a global flu pandemic has not yet eventuated, this example of proactive crisis<br />

management is consistent with best practice measures. Utilizing experience, corporate knowledge<br />

and a collaborative approach, this adaptation of scenario planning has assisted the Scottish tourism<br />

sector and businesses to become more aware, prepared, and confident in the advent of such a<br />

potential crisis. This case study highlights the potential for application in the operation and<br />

management of any tourism destination.<br />

(Source: Page, et al, 2006)<br />

3. Response<br />

The crisis response strategy includes actions taken leading up to and immediately after the impact of<br />

a crisis, to minimize its effects and to manage the consequences. The tasks involved will depend<br />

upon the nature and the extent of the crisis, but if a destination is experiencing a crisis imposed by a<br />

disaster impacting upon the community, the responsibility for management tasks related to the<br />

protection of lives and property will rest with the disaster management agencies. The destination will<br />

liaise with those agencies and be part of a coordinated, integrated response to the disaster. It is<br />

important that the destination and tourism operators don’t undertake tasks which are the<br />

responsibility of emergency services or disaster management agencies.<br />

Where the destination is dealing with a business or organizational crisis, it will be necessary to<br />

identify business continuity objectives and strategies and to manage the implementation of the crisis<br />

management plan. In order for visitors to maintain confidence in the destination, it is important that<br />

normal business operations and services are not neglected, but are continued with the least<br />

disruption possible. Effective crisis response management depends upon trained and experienced<br />

personnel with the capacity and flexibility to react to whatever situation the crisis presents.<br />

Importantly, the destination’s crisis management team will need an accurate picture of how the crisis<br />

has affected people, facilities, infrastructure and operations in order to make decisions and decide<br />

upon priorities. It may be necessary to task personnel to carry out a survey and assessment to obtain<br />

the specific information required for decision-making purposes, including:<br />

• effects of the crisis upon visitors;<br />

• damage to property and infrastructure;<br />

• disruption to services;<br />

• consequences of the crisis for regional tourism and the surrounding community; and<br />

• the personnel, equipment and measures needed to deal with the crisis.<br />

Depending upon the nature of the crisis, the destination may need to establish and maintain<br />

communication with key government and community leaders. Where possible these people should<br />

be included in crisis management exercises to allow liaison and communication links with them to be<br />

practised.<br />

<strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> – An Authoritative Guide to Managing Crises in <strong>Tourism</strong> 59


Crisis <strong>Management</strong> in <strong>Tourism</strong> in Tropical North Queensland in 2000<br />

Explanation of a cyclone<br />

Tropical cyclones (known as hurricanes in the northern hemisphere) are intense atmospheric<br />

depressions in which the winds whirl in a clockwise direction around a small, calm ‘eye’. There are<br />

five categories of cyclones, with wind speeds ranging from 63km/h to in excess of 280km/h.<br />

Tropical North Queensland (TNQ) is the main tropical region of Australia and encompasses the<br />

north-eastern corner of Australia, including vast inland areas and Cape York. TNQ is within the<br />

cyclone belt of the southern hemisphere and during the cyclone season, between November and<br />

May, cyclonic winds can destroy vegetation and property while storm surges can inundate low-lying<br />

areas causing erosion and flooding.<br />

Background<br />

When a tropical cyclone forms off the coast of TNQ it is tracked by government meteorological<br />

agencies and the media. Television stations in southern Australia, the main markets for TNQ<br />

tourism, usually use file footage of previous, destructive cyclones as background to a story of a new<br />

cyclone forming; even when the new cyclone is hundreds of kilometres out to sea and having no<br />

effects. This can cause concern to potential visitors and reduce domestic tourism numbers to TNQ.<br />

Many of the cyclones which form in the Pacific Ocean each year don’t even reach the Queensland<br />

coast.<br />

<strong>Tourism</strong> Tropical North Queensland (TTNQ) is the Regional <strong>Tourism</strong> Organization for TNQ and is<br />

responsible for destination marketing and management of tourism for the region. In 1999 TTNQ<br />

developed a crisis management plan, primarily for cyclones. Extensive consultation took place with<br />

the government agencies responsible for disaster preparedness and disaster management<br />

including the State Emergency Services Department, Police, Queensland Weather Bureau, Cairns<br />

City Council plus business groups such as the Chamber of Commerce and the Cairns and Region<br />

Economic Development Council. The purpose of the plan was not to duplicate or impinge on the<br />

official agencies’ roles and responsibilities, but to address additional elements, particularly<br />

communication to tourism markets in Australia and overseas on the situation in relation to cyclones.<br />

Another objective was to facilitate consistent and accurate reporting of the impact on tourism of any<br />

disaster in the region by the agencies and organizations dealing with the media.<br />

The plan, which was agreed to by all relevant parties, contains business and private contacts for<br />

key representatives of all agencies and organizations so that immediate communication can be<br />

initiated and actions agreed to when an event occurs.<br />

It was also agreed that in an event which had the potential to damage normal communication<br />

channels, a tourism representative would join the government agencies in their operations centre<br />

(established when a situation requires the State’s emergency services to take control from a central<br />

point, it has alternative power and communications). Thus contact could be maintained with the<br />

media and the travel industry in Australia and overseas, and accurate reports provided.<br />

Cyclone Steve<br />

On the 26 February 2000, Tropical Cyclone Steve was identified off the coast of Cairns. It quickly<br />

moved toward the North Queensland coast with increasing wind strength. By 1pm the following day<br />

it was classified as a Category 2 cyclone with winds of up to 170 km/h. Cyclone warnings were<br />

issued every hour via local media, and tourism and accommodation operators immediately<br />

implemented emergency procedures for the safety of visitors and staff. The general community was<br />

also advised to take actions to secure properties and buildings and to take precautions for personal<br />

safety.<br />

60 <strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> – An Authoritative Guide to Managing Crises in <strong>Tourism</strong>


Implementation of the <strong>Tourism</strong> Crisis Strategy<br />

The tourism crisis management plan was implemented, and in the late afternoon of 27 February a<br />

TTNQ senior manager joined emergency management personnel in the operations centre set up in<br />

the Cairns City Council Offices and was given access to facsimile and email connections.<br />

Cyclone Steve passed over the coastline just north of Cairns at 7pm on 27 February causing some<br />

damage to vegetation, but little damage to buildings. In the immediate aftermath, it was possible to<br />

coordinate communications from the operations centre to tourism operators in the region to monitor<br />

the situation and its effects on local operations. Media releases were sent to Australian and<br />

international sources at 10pm that evening advising that tourism was unaffected and that it would<br />

be ‘business as usual’ in the main coastal areas of the region in the morning.<br />

The following day, staff from the State <strong>Tourism</strong> Organization, <strong>Tourism</strong> Queensland, coordinated a<br />

series of radio news interviews with TTNQ to reach the main markets in Australia reassuring<br />

potential visitors of the lack of damage and normal tourism operations. These interviews were<br />

conducted from the TTNQ office as normal communications were not affected. However, if<br />

communications had been damaged, the interviews could have been conducted from the operations<br />

centre.<br />

Summary<br />

The TTNQ <strong>Tourism</strong> Crisis <strong>Management</strong> Plan had been developed and agreed to, and when it was<br />

implemented for an emergency, it worked. The tourism representative having access to the<br />

emergency operations centre, which was a key part of the plan, was possible because of the<br />

relationships that had been developed with the various government agencies and business<br />

organizations during the planning process.<br />

Pivotal to this was the understanding by the agencies and organizations of the importance of<br />

tourism to the local economy. In addition to the plan, there was a public relations campaign by<br />

TTNQ to educate local residents and the business community about tourism’s contribution to the<br />

economy and the direct and indirect employment opportunities it created for local residents.<br />

Through proactive communication with major markets, it was possible to broadcast their own<br />

accurate and immediate messages on the condition of tourism in TNQ and its facilities and services,<br />

rather than rely upon the emotive reporting and file footage used by the television stations.<br />

This event highlighted the importance of a major tourism destination developing collaborative<br />

relationships and plans, and taking responsibility for tourism-related communications in a crisis.<br />

(Source: Kean, I: APEC International Centre for <strong>Sustainable</strong> <strong>Tourism</strong>, 2006)<br />

The <strong>Tourism</strong> Crisis <strong>Management</strong> Centre<br />

The crisis management team will be responsible for the regular briefing and management of<br />

personnel undertaking crisis management tasks, the processing of information relevant to its purpose<br />

(collecting, collating and evaluating), decision-making, and strategic and tactical planning. (Strategic<br />

plans address the broader, longer-range issues of crisis management; tactical plans focus upon the<br />

short-term operational activities for the following two to four hours). A crisis management team must<br />

also keep records of all significant information, actions and decisions. This is necessary so that<br />

decisions and actions taken during the crisis can be justified when required.<br />

A tourism crisis management centre provides the means by which the essential response<br />

management functions are achieved and enhanced. Where possible, the destination should identify a<br />

<strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> – An Authoritative Guide to Managing Crises in <strong>Tourism</strong> 61


oom or area to be established as the crisis control centre and provide the following minimum<br />

facilities and equipment:<br />

• a main work area with adequate space, lighting and low sound level;<br />

• area for meetings and briefing staff;<br />

• access control point;<br />

• separate media briefing room;<br />

• rest and recreation area;<br />

• tea and coffee making facilities;<br />

• display boards to present, in summary form, information on the crisis and response activities<br />

being carried out;<br />

• telephones;<br />

• facsimile machine;<br />

• computers;<br />

• television and radio (to monitor media reports);<br />

• photocopier;<br />

• chairs and tables;<br />

• stationery supplies;<br />

• auxiliary power; and<br />

• first aid equipment.<br />

Crisis Information <strong>Management</strong><br />

One aspect of crises which is difficult for people to appreciate is the sheer volume of decision-making<br />

required during crisis response operations. One of the reasons why a destination needs a crisis<br />

management team is because it’s unrealistic to expect any one person to cope with the demands<br />

imposed by a crisis event, or for one person to have the specialized knowledge required to make all<br />

the decisions required.<br />

In order for the crisis management team to make good decisions, operational information must be<br />

processed – collected, collated and evaluated - to convert the raw data into a practical decisionmaking<br />

tool. It's a matter of sifting and sorting to separate the relevant from the irrelevant and fact<br />

from fiction. The core questions to be applied are always, 'what does this mean to us?’ and ‘what<br />

must we do as a result of this?’<br />

There will be many sources from which information will come including regional tourism operators,<br />

organizations, agencies and the general public. But the team mustn't automatically rely upon the<br />

information it needs being provided; they must identify their information requirements and sources -<br />

and these will change as the crisis response operation develops. The starting point for collecting<br />

information is the question, ‘what do we need to know?’ followed later by ‘what do we need to know<br />

now?’ It is easier to identify your information needs as more information on the crisis is assembled<br />

and problems become clearer.<br />

Information then has to be put together, checked, and assessed by the destination to establish its<br />

relevance and reliability; to identify gaps in the information and additional information needs. This is<br />

62 <strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> – An Authoritative Guide to Managing Crises in <strong>Tourism</strong>


the form of information that is required for decision-making purposes: this is what we know, now what<br />

do we have to do about it?<br />

Once made, decisions must be distributed to all those who have a need to know which may include<br />

visitors, government and community agencies, and the general public via the media.<br />

<strong>Tourism</strong> Business Continuity<br />

Business continuity is a key issue of crisis response management and a destination should aim, as<br />

far as practicable, to maintain normal services to visitors and operators wherever possible. Business<br />

continuity issues to be considered by the crisis management team include:<br />

• identification of visitors’ needs and the provision of essential support services;<br />

• priorities for restoration of facilities, services and infrastructure;<br />

• resources and budget requirements;<br />

• tactical (short-term) and strategic (longer-term) business issues;<br />

• media management;<br />

• public relations issues and arrangements;<br />

• consultation with government/politicians/community leaders;<br />

• environmental management issues; and<br />

• alternative means and sites of operation.<br />

4. Recovery<br />

The crisis management strategy of recovery is concerned with the restoration and rehabilitation of<br />

regional tourism and its return to full functioning. Business continuity starts with the response to a<br />

crisis: taking the earliest opportunity to identify and resolve problems which will disrupt regional<br />

tourism operations; to identify strategies and the resources required to restore normal functioning;<br />

and to secure the cooperation and assistance of government and community leaders for the crisis<br />

response and recovery processes.<br />

It is certainly in the community’s economic best interests for tourism operators and destinations to be<br />

assisted in restoring business activities to pre-crisis levels.<br />

Examples of this following the events of September 11 are included in the Appendices. Many Asia-<br />

Pacific nations also provided business incentives to protect their tourism interests following the SARS<br />

outbreak. For example, the Thai Government arranged:<br />

• special low interest loans with flexible conditions for travel agents, hotels and other tourism<br />

industry operators through the newly established Small and Medium Size Enterprises<br />

Development Bank of Thailand, and the Industrial Finance Corporation of Thailand (IFCT);<br />

and<br />

• intensive training programs for tourism industry personnel, jointly organized by the Ministry of<br />

<strong>Tourism</strong> and Sports, the Ministry of Labour and Social Welfare, and with the cooperation of<br />

the <strong>Tourism</strong> Council of Thailand.<br />

(Source: Thai Vice Minister of <strong>Tourism</strong> and Sports, Mr Krirk-Krai Jirapaet, in a speech delivered to<br />

the Asia-Pacific Ministerial Summit on Crisis <strong>Management</strong>, Manila, 18 June 2003.)<br />

<strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> – An Authoritative Guide to Managing Crises in <strong>Tourism</strong> 63


Recovery Processes<br />

Just as no two crises will ever be the same, so each crisis recovery process will have a life of its own<br />

and will generate different problems requiring a range of knowledge and skills and, above all, the<br />

willingness and ability to adapt to changing circumstances. Once the immediate crisis is over, it’s<br />

necessary to establish what you’re left with: how has it affected regional tourism business, and what<br />

still has to be done to return operations to normal? The crisis management team should provide the<br />

core members of the recovery management team, but it may also need to include representatives of<br />

relevant government departments and agencies, and community leaders.<br />

Recovery decision-making processes will be dependent upon information and an accurate<br />

assessment of the:<br />

• residual effects upon regional tourism operations;<br />

• existing damage to property and infrastructure;<br />

• causes of ongoing disruption to services;<br />

• consequences of the crisis for tourism destinations and surrounding communities; and<br />

• personnel, equipment and measures needed to deal with the recovery operation.<br />

Crisis recovery management tasks include:<br />

• establishing recovery objectives;<br />

• identifying priorities of action;<br />

• identifying current and future needs and identifying sources of assistance;<br />

• communicating with regional tourism operators;<br />

• liaising with relevant government and non-government agencies and community leaders;<br />

• briefing media, government and other agencies on crisis recovery activities;<br />

• monitoring the restoration of business operations;<br />

• tactical and strategic business continuity planning; and<br />

• decision-making.<br />

The destination’s crisis management team should monitor and evaluate community perceptions and<br />

reactions to the crisis to identify and address any community concerns. The public may have<br />

misinterpreted actions taken, or may be angry about perceived inaction by destinations or tourism<br />

operators during the crisis, and any misconceptions need to be addressed as they may have<br />

negative effects upon community support and the return to normal operations.<br />

Debriefing Processes<br />

Debriefings must be conducted following any crisis response or exercise to analyse the management<br />

and outcomes of the crisis and to gain the information necessary to improve plans, procedures and<br />

the training of personnel. Lessons from debriefing processes must be identified and acted upon to<br />

ensure the continual improvement of crisis management capabilities, and these lessons should be<br />

shared with other regional tourism organizations and the industry’s international associations so that<br />

the wider visitor industry can benefit.<br />

64 <strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> – An Authoritative Guide to Managing Crises in <strong>Tourism</strong>


A further important purpose of debriefing, too, is to formally acknowledge the efforts of personnel<br />

during the crisis.<br />

Debriefings should follow a standard format to ensure that every aspect is adequately addressed.<br />

The following aide-memoir provides a useful tool for tourism crisis managers:<br />

Aide-Memoir for Crisis Debriefing<br />

• What happened?<br />

o Known event or sequence of events which caused the crisis.<br />

• What did we do?<br />

o Sequence of actions taken by the crisis management team in response to<br />

the crisis.<br />

• How well did it work?<br />

o What worked and what didn’t and why was this the case?<br />

• Knowing what we now know, can we do better?<br />

o Can our plans be improved?<br />

o Do we need more or different training and exercises?<br />

o Do we need better liaison with government departments and community agencies?<br />

o Was our media management effective?<br />

o Did we identify and meet visitors’ needs to their satisfaction?<br />

o Do we need better or different communications?<br />

o Do we need a different or amended crisis management system?<br />

o Was our tourism risk management process effective?<br />

Following debriefing, the planning committee should:<br />

• analyse debriefing discussions and outcomes;<br />

• identify planning, training and operational needs;<br />

• identify timelines and allocate responsibilities;<br />

• revise and update the crisis management plan, as required;<br />

• organize additional training for personnel as necessary; and<br />

• test and evaluate revised plans and procedures and personnel.<br />

Debriefing should take place within a few weeks of the crisis itself while events are still clear in<br />

people’s minds.<br />

Phuket <strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> Strategy<br />

The 2004 Indian Ocean tsunami devastated many of the coastal areas of Phuket Province in<br />

Thailand. All businesses were affected to some degree. <strong>Tourism</strong> is the main economic activity in<br />

Phuket and it suffered a severe downturn as pictures and reports of the disaster spread around the<br />

world within hours of the tsunami striking the coast.<br />

The Thai Government Ministry of <strong>Tourism</strong> and Sport, through the Office of <strong>Tourism</strong> Development,<br />

<strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> – An Authoritative Guide to Managing Crises in <strong>Tourism</strong> 65


determined that Phuket and other tourism regions of Thailand should be better equipped to deal<br />

with future crises and disasters which may impact on tourism and the Thai economy. With<br />

assistance from the APEC International Centre for <strong>Sustainable</strong> <strong>Tourism</strong> (AICST) they embarked on<br />

a project to develop and implement a tourism risk management strategy for Phuket and for this<br />

project to be a model for the development of similar strategies in other tourism destinations in the<br />

country.<br />

The intention was to develop the knowledge, skills and experience of a team of local Thai<br />

government officials and industry representatives, so that they would be able to replicate the work in<br />

other areas. It was designed to be a capacity building project in addition to actually developing a<br />

tourism risk management strategy.<br />

The project commenced in March 2006 with the formation of a Thai Operational Team (TOT) who<br />

would develop and implement the strategy. The TOT represented all of the government and private<br />

sector agencies and organizations related to tourism. This included the Police, Health, Education,<br />

Defence, Meteorological Bureau and other national government agencies in addition to the Phuket<br />

Governor's office, local government representatives and business and tourism organizations. The<br />

project is due for completion in February 2007.<br />

AICST contracted the services of the Asian Disaster Preparedness Centre (ADPC) in Bangkok to<br />

assist with the management of the project. The role of AICST and ADPC is to provide information<br />

and processes and guide the Office of <strong>Tourism</strong> Development and the TOT in their work.<br />

Workshops were conducted where the TOT identified potential risks to tourism. These included<br />

risks from both man-made and natural hazards. The risks were analysed and prioritized in<br />

accordance with risk management processes outlined in this guide and actions were identified to<br />

treat them.<br />

This Phuket <strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> Strategy, when completed, should contain a summary of all<br />

potential risks, the relevant government agencies that have responsibilities for dealing with each of<br />

them, and additional actions which the tourism industry can take to ensure the safety and security of<br />

visitors and tourism business employees. It should provide real linkages between the government<br />

agencies’ and the tourism industry’s actions and strengthen destination Phuket's capabilities in<br />

being prepared for, and dealing with, any future crises that impact on tourism.<br />

This is the first case identified anywhere in the region where a destination has taken a classic risk<br />

management approach (as outlined in this guide) to develop a risk management strategy using a<br />

multi-stakeholder group. It was not without challenges and problems and some valuable lessons<br />

have been learnt.<br />

The need to inform and brief all the stakeholder groups comprehensively and individually before the<br />

project commenced, was underestimated. It quickly became apparent that agencies and<br />

organizations had different understandings and appreciation of what risk management meant and<br />

did not fully comprehend what the project was intended to deliver. This was addressed after the first<br />

workshop but in future, needs to be undertaken before the work commences. It is important that<br />

each stakeholder not only understands the project but is also able to consider the implications,<br />

features and benefits of such a strategy to their own agency or organization.<br />

There was insufficient emphasis given initially to gaining the commitment and ownership of the<br />

private sector tourism organizations. This has also since been addressed, however progress could<br />

have been faster had this been fully covered at the start.<br />

It was not until after the project commenced that it became apparent that a number of the<br />

government agencies had developed their own specific disaster management strategies as a result<br />

66 <strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> – An Authoritative Guide to Managing Crises in <strong>Tourism</strong>


of the tsunami; for matters such as terrorism, crime, the outbreak of medical pandemics, etc. Each<br />

of these strategies had a potential impact on the destination and tourism operators and associated<br />

businesses, however the tourism industry was having difficulty in responding to the implications of<br />

these various individual strategies. It was necessary to gather information on each of these<br />

strategies and it was decided to include tourism's response to these strategies in the new <strong>Tourism</strong><br />

<strong>Risk</strong> <strong>Management</strong> Strategy.<br />

The Phuket <strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> Strategy is a brave new initiative by the Phuket tourism<br />

industry and the associated government agencies. It has already been demonstrated that much can<br />

be achieved by all working together. The tourism industry and its organizations will have one<br />

strategy to manage, which will focus on all potential risks. It will provide roles and responsibilities for<br />

each tourism organization to undertake. It is expected that it will take a few years for the industry to<br />

fully address all of the possible actions that need to be taken. Government support and funding may<br />

also be required to assist with implementation of some actions, such as staff training.<br />

This is still a work in progress, but an important start for Phuket and Thai tourism to address critical<br />

strategic risk issues facing the industry in the future. By being more knowledgeable and aware;<br />

better prepared and more able to manage the impacts of a crisis; the destination will be stronger,<br />

safer and more secure for visitors and should be more competitive on the world tourism stage.<br />

(Source: Kean, I: APEC International Centre for <strong>Sustainable</strong> <strong>Tourism</strong>, 2006)<br />

Chapter Summary<br />

This chapter examines the crisis management strategies of prevention/mitigation, preparedness,<br />

response and recovery for a destination. It suggests the composition of, and tasks for, a destination’s<br />

crisis planning committee; identifies the key elements of a crisis response management plan;<br />

examines the training and exercising (testing) needs of an destination’s crisis management team;<br />

examines business continuity processes; and describes crisis recovery processes including<br />

debriefing. The chapter also highlights the need for destinations and operators to work with relevant<br />

government agencies and community organizations to develop effective partnerships for crisis<br />

management.<br />

Checklists for prevention, preparedness, response and recovery follow on the next pages.<br />

References<br />

Page, S., Yeoman, I., Munro, C., Connell, J. and Walker, L. (2006), ‘A case study of best practice—<br />

Visit Scotland’s prepared response to an influenza pandemic’, <strong>Tourism</strong> <strong>Management</strong>. Volume 27,<br />

pp.361-393<br />

<strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> – An Authoritative Guide to Managing Crises in <strong>Tourism</strong> 67


Checklist for Prevention<br />

1. Have you conducted a risk management process which<br />

identifies, analyses, evaluates and treats risk to your<br />

destination or business?<br />

YES<br />

2. Are you continuing to monitor and evaluate new <br />

<br />

sources of risk?<br />

3. Do you monitor and evaluate the progress of risk <br />

<br />

treatment measures?<br />

4. Have you conducted a recent SWOT analysis? <br />

5. Do you attend multi-agency disaster management<br />

meetings or maintain information on their current<br />

activities?<br />

<br />

<br />

6. Have you established effective liaison with regional or<br />

national disaster management agencies?<br />

7. Have you established liaison with industry<br />

organizations, government agencies and community<br />

leaders/<br />

8. Have you established an effective working relationship<br />

with the media?<br />

<br />

<br />

<br />

<br />

NO<br />

<br />

<br />

<br />

<br />

68 <strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> – An Authoritative Guide to Managing Crises in <strong>Tourism</strong>


Checklist for Preparedness<br />

1. Have you established a tourism crisis planning<br />

committee?<br />

2. Has the committee developed a tourism crisis<br />

management plan which:<br />

YES<br />

• describes activation procedures? <br />

• allocates roles and responsibilities? <br />

• identifies control and coordination arrangements? <br />

• includes Standard Operating Procedures? <br />

• identifies information management requirements? <br />

• establishes communications methods? <br />

• describes public relations and media management<br />

arrangements?<br />

• includes response, recovery and business<br />

<br />

<br />

continuity?<br />

3. Has the committee identified training needs? <br />

4. Has regular training been developed and organized, <br />

<br />

including induction training for new staff?<br />

5. Has the committee conducted/scheduled regular mock <br />

<br />

exercises?<br />

6. Has the committee included informal (discussion)<br />

exercises as part of its normal meeting routine?<br />

<br />

<br />

<br />

<br />

NO<br />

<br />

<br />

<strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> – An Authoritative Guide to Managing Crises in <strong>Tourism</strong> 69


Checklist for Response<br />

YES NO<br />

1. Have you activated your crisis management team and <br />

<br />

crisis management centre?<br />

2. Has the team identified information needs and sources? <br />

3. Have you assessed the:<br />

• effects of the crisis upon regional tourism? <br />

• damage to property and infrastructure? <br />

• disruption to services? <br />

• consequences of the crisis? <br />

• personnel, equipment and measures needed? <br />

4. Has the team identified business continuity issues and <br />

<br />

priorities?<br />

5. Are tactical and strategic plans being developed? <br />

6. Have you established a media centre and appointed a <br />

<br />

media spokesperson?<br />

7. Are visitors’ needs being identified and met? <br />

8. Have you established liaison and communications with <br />

<br />

government officials, community leaders and<br />

emergency services?<br />

9. Are media reports being monitored for accuracy? <br />

70 <strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> – An Authoritative Guide to Managing Crises in <strong>Tourism</strong>


Checklist for Recovery<br />

YES NO<br />

1. Have you activated your crisis recovery team? <br />

2. Does it include relevant government officials and <br />

<br />

community leaders?<br />

3. Has the committee established:<br />

• residual effects upon tourism? <br />

• existing damage? <br />

• causes of ongoing disruption to services? <br />

• consequences of the crisis for the organization and<br />

the community?<br />

• personnel, equipment and measures needed? <br />

4. Has the committee identified:<br />

• recovery objectives? <br />

• priorities of action? <br />

• current and future needs and sources of<br />

assistance?<br />

• relevant government and non-government agencies<br />

and community leaders?<br />

• tactical and strategic business continuity plans? <br />

5. Is the committee overseeing continuing media <br />

<br />

management and public relations activities?<br />

6. Have staff and visitors’ emotional and physical needs <br />

<br />

been identified and met?<br />

7. Are community perceptions and media reports being <br />

<br />

monitored?<br />

8. Have debriefing processes been organized? <br />

<br />

<br />

<br />

<br />

<br />

<br />

<strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> – An Authoritative Guide to Managing Crises in <strong>Tourism</strong> 71


CHAPTER 5: MEDIA AND COMMUNICATION<br />

Aim of This Chapter<br />

The aim of this chapter is to describe the role of the media and communication (including the role of<br />

Government Travel Advisories) in tourism crisis situations. It identifies the importance of the role of<br />

the media and as a conduit of information to the community and travellers. The chapter also<br />

establishes a systematic method of working with the media for destination managers.<br />

Introduction<br />

It has been estimated that a remarkable 25% of all news stories involve disasters or crises of some<br />

sort. Disasters attract the media in very large numbers, and it's not hard to see why. Disasters are<br />

spectacular, action-orientated, dramatic events which routinely feature human suffering and feats of<br />

endurance and bravery. From a media perspective they are relatively easy to cover, provide ample<br />

opportunity for dramatic photographs, and are guaranteed to attract an audience or sell newspapers.<br />

Disaster and crisis events inevitably prove an irresistible combination for the media, and for the<br />

general public who will be avid consumers of what the media produces.<br />

News will normally be reported as soon as it becomes available, and this is the case regardless of<br />

how inadequate the initial information is, or how uncertain the source. The advances in modern<br />

technology mean that news stories and pictures can be transmitted around the world within minutes.<br />

Even if the media isn't present in the initial stage of a disaster or crisis, members of the public will be,<br />

with mobile telephones and video cameras in hand, and their pictures will be accessed by the media<br />

and transmitted. Passengers in the London Underground rail system following the bombings in July<br />

2005, were transmitting pictures to the media from their wrecked carriages and as they evacuated<br />

through tunnels to safety.<br />

Media personnel usually have little understanding of the fact that in the confused aftermath of a<br />

disaster, information may be difficult or impossible to obtain. This can make them suspect that<br />

authorities are hiding information from them when the truth is that it just isn't available.<br />

Journalists are usually generalists, not specialists. This means that they are unlikely to have any<br />

depth of understanding of a disaster or crisis event, the cause, effects or the necessary response and<br />

recovery processes. They can, therefore, easily misunderstand what they see and hear.<br />

In the case of a tourism crisis, it is essential that local tourism operators only comment to the media<br />

on matters which are within the scope of their responsibilities and that they do not comment on<br />

operational matters which are the responsibility of emergency services or disaster management<br />

agencies.<br />

Patterns of Media Reporting<br />

There is a clear and predictable pattern of media reporting of disasters, so tourism operators and the<br />

industry will be able to predict the media focus and anticipate the information media representatives<br />

will be seeking:<br />

• In the initial stages, the media will report the extent and effects, concentrating on the facts of the<br />

situation.<br />

• The next focus (maybe one to two days later) is on the human interest side, in particular the<br />

heroes of the event and the hardships suffered by victims.<br />

72 <strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> – An Authoritative Guide to Managing Crises in <strong>Tourism</strong>


• The third stage is identifying who is to blame: how did it happen, who didn't do what they should<br />

have done to stop it or to reduce the effects? Then, how do we stop it happening again?<br />

Managing the Media<br />

The aim must always be to work with the media, not against them: so the media should be managed<br />

appropriately; cooperation is always preferable to confrontation; and, most importantly, it must be<br />

remembered that the media is the communication medium from the tourism operator or industry to<br />

the wider community and prospective travellers. The media is a key element in any risk management<br />

strategy for a tourism destination.<br />

Guidelines for the Visitor Industry<br />

<strong>Risk</strong> management strategies are necessary to help retain the confidence of travellers and the travel<br />

industry, and to minimize the impact of a crisis on the destination.<br />

No matter what kind of crisis occurs, though, the techniques for dealing with it effectively are similar.<br />

Effective communication based on the principles of honesty and transparency is the key to<br />

successful crisis management, but other aspects of tourism also need to be involved, especially:<br />

• Promotion;<br />

• Safety and security; and<br />

• Market research.<br />

The following guidelines in this chapter draw heavily upon an excellent report by the United Nations<br />

World <strong>Tourism</strong> Organization (UNWTO) titled, Crisis Guidelines for the <strong>Tourism</strong> Industry, by Deborah<br />

Luhrman. This work was distributed to delegates at the Asia-Pacific Ministerial Summit on Crisis<br />

<strong>Management</strong> in Manila, 18 June 2003. The guidelines suggest specific actions to take before, during,<br />

and after, a crisis.<br />

The goal is to have visitors returning to a destination as quickly as possible. Effective media<br />

management techniques can speed up that process.<br />

Normally, a regional or local tourism organization would take the responsibility for the development of<br />

a communication strategy for a destination, as they would have the resources and experience for<br />

dealing with the media and communicating with key industry partners and potential visitors in all<br />

markets.<br />

I. Before a Crisis: Preparing for the Worst<br />

Never underestimate the potential harm a crisis can do to tourism. The best way to minimize its<br />

impact is to be well prepared to respond to, and recover from, its effects.<br />

A) Putting a communications strategy in place:<br />

• Prepare a communication management plan<br />

A crisis can take many different forms, so your planning process should be based upon realistic<br />

worst-case scenarios. Audit current resources available to deal with a crisis. Designate roles and<br />

responsibilities and establish a chain of command for decision-making. Collect and maintain a current<br />

list of key contacts. Involve public services and private tourism companies in the planning process -<br />

one key to effective communication management is a cooperative working relationship between<br />

agencies and organizations. Test your plans, procedures and personnel through exercises held<br />

<strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> – An Authoritative Guide to Managing Crises in <strong>Tourism</strong> 73


annually as a minimum, and then review and amend your plans and training programs subsequent to<br />

each exercise and after any activation of the plans.<br />

• Designate spokespersons<br />

It is essential that information to the media be coordinated and provided by an authoritative source.<br />

The designated spokesperson should be a senior, suitably trained, and credible destination<br />

representative. Additional trained spokespersons must also be designated as a crisis may extend<br />

over many days. Personnel should undergo specific media training including regular practice in mock<br />

news conferences and rehearsals.<br />

• Establish a press and communications unit<br />

Every tourism destination should have a communications unit. This unit would normally be located<br />

within the regional or local tourism organization office and should include staff trained in working with<br />

the media, a contact list of local and international media, several telephone lines, fax broadcast<br />

machines, a mass email computer program, and background information on the destination -<br />

including maps, stock photos, arrivals statistics and fact sheets on previous crises. If possible, this<br />

background information should be available in a special media section of the destination’s website.<br />

• Communicate regularly with media<br />

Relationships can take years to develop, so it is important to communicate regularly with the media,<br />

in good times as well as bad. The policy should be one of honesty and transparency. You can<br />

establish your credibility and an effective working relationship with the media by supplying them with<br />

information about what is new in your destination; by responding promptly to questions they have,<br />

and by providing the opportunity for familiarization visits for journalists.<br />

• Pay attention to local media<br />

Local newspapers, television and radio are a primary source of information for the international<br />

media. In a crisis, local news reports can go global within minutes. So even though your principal<br />

target is media in the main generating markets, you cannot afford to ignore local journalists. They will<br />

also continue to report the crisis recovery story long after the international media has departed.<br />

• Train spokespersons in safety and security issues<br />

Communication on security matters should be in response to a relevant crisis situation, rather than<br />

proactive. When a crisis erupts, the spokesperson should be able to communicate in an authoritative<br />

manner, but striking a balance between providing sufficient information and providing unnecessary<br />

detail and emphasis on security issues. According to one tourism minister experienced in such<br />

matters: “You do security, you don’t talk about it”.<br />

B) Promotion planning<br />

• Develop a database of partners in the travel trade<br />

A database should be maintained of all tour operators sending visitors to your destination, major<br />

travel agencies and transport companies in your key generating markets, incoming operators and<br />

tour organizers, as well as local hotels, transport companies, local promotion boards and tourism<br />

associations.<br />

• Build an email or fax broadcast system<br />

Communication systems capable of reaching the partners in your database should be in place for<br />

use in a crisis. But begin routine communication of news to your partners before a crisis strikes. If<br />

you only communicate during times of crisis, the image transmitted will be a negative one.<br />

74 <strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> – An Authoritative Guide to Managing Crises in <strong>Tourism</strong>


• Be honest and ethical in promotion<br />

Just as in communication, building and maintaining credibility is fundamental in tourism promotion.<br />

Avoid overselling or misrepresenting your destination and be ethical in the choice of promotional<br />

content, or you could create your own crisis. The Bahamas, for example, was heavily criticized in the<br />

international media for using photos in its advertising that were taken in Hawaii, the Seychelles and<br />

Florida.<br />

• Set aside budget reserves for emergencies<br />

Recuperating from a crisis requires money for additional promotion and communication activities. A<br />

prudent destination management organization will set aside an emergency fund for use in a crisis.<br />

Establish efficient methods of accessing these funds when required.<br />

• Stay out of the Travel Advisory War<br />

Ideally, Government Travel Advisories should be issued in accordance with Article 6 of UNWTO’s<br />

Global Code of Ethics for <strong>Tourism</strong>, which states:<br />

“...governments should issue such information without prejudicing in an unjustified or exaggerated<br />

manner the tourism industry of host countries and the interests of their own operators”.<br />

The purpose of travel advisories is to ensure that travellers are well-informed and well-prepared for<br />

travel overseas, and to help them avoid dangers and difficulties. They provide up-to-date information<br />

about the security environment in a particular country, including possible terrorist threats or problems<br />

with law and order. They also provide advice on a range of practical issues such as visa<br />

requirements, health and medical issues, cultural or religious differences, etc. Travel advisories<br />

should be reviewed and updated as appropriate.<br />

• Improve communication of security issues with visitors<br />

Make visitor safety and emergency information available on your destination website. Some of the<br />

most useful information to include is: emergency telephone numbers; exchange rates; design of<br />

banknotes; common rules of behaviour; places to avoid travelling; safe places to leave luggage;<br />

average prices of common purchases; the need to report crimes before a visitor returns home; and<br />

the importance of keeping photocopies of travel documents. The <strong>Tourism</strong> Authority of Thailand (TAT)<br />

website, for example, includes information on tough laws aimed at ending child prostitution and urges<br />

visitors to report incidents.<br />

• Encourage visitors to learn food safety practices<br />

The World Health Organization has prepared an excellent booklet of advice called “Safe Food for<br />

Travellers”. Adapt this information on how to avoid illness while travelling for use in promotional<br />

material, especially on the destination website or provide a link to the booklet on the WHO website:<br />

www.who.int/fsf/Documents/brochure/travellers.PDF.<br />

C) Reviewing security systems<br />

• Maintain a working relationship with other government agencies responsible for safety<br />

and security<br />

Decisions made by government agencies such as; police, emergency services, health, consumer<br />

affairs, judiciary, foreign affairs, and civil defence have a great influence on how a crisis involving<br />

visitors is managed. Start a Safety and Security Working Group to meet regularly to discuss tourism<br />

issues. In South Africa, for example, the <strong>Tourism</strong> Safety Task Group is made up of the Department of<br />

Environmental Affairs and <strong>Tourism</strong>, the national police, the tourism board (SATOUR), the <strong>Tourism</strong><br />

Business Council, the Department of Foreign Affairs and nine provincial tourism departments (see<br />

Case Study in Chapter 3).<br />

<strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> – An Authoritative Guide to Managing Crises in <strong>Tourism</strong> 75


• Get involved in defining security procedures<br />

<strong>Tourism</strong> authorities need to be aware of all security measures being taken that affect their industry.<br />

Review the entire tourism chain - airport arrivals, ground transport, hotels, restaurants, shopping<br />

zones and all tourism sites. Consider the need for enhanced security at all sites, including beaches or<br />

entertainment districts. The goal is to provide a safe environment with procedures that are as<br />

invisible as possible and do not restrict the arrival of visitors.<br />

• Maintain information on visitor safety and security<br />

<strong>Tourism</strong> industry bodies at the national, state/provincial and local levels should liaise with other<br />

government bodies, specialized services and the tourism sector on safety and security issues. They<br />

should also keep records on basic facts of tourism security such as rules and regulations,<br />

identification of risks, safety statistics and incidents. In addition, information should be shared with<br />

counterpart organizations around the world.<br />

• Train local personnel in security issues<br />

Government and industry tourism organizations can take an active role in improving safety and<br />

security by sponsoring workshops on safety issues for local tourism workers and by encouraging<br />

partnerships between public and private security companies in the tourism sector, including local<br />

police and hotel security guards. In addition, they should undertake community awareness programs<br />

that help local residents recognize the value of tourism to their communities. They can help make it<br />

safer for visitors by reporting suspicious activities.<br />

• Establish tourism police and emergency call centres<br />

Special tourism police forces, such as ones in Argentina, Australia, the Dominican Republic, Egypt,<br />

Greece and Malaysia, are trained to offer assistance in several languages. Mexico’s Green Angels<br />

patrol the highways with bilingual crews (see Case Study in Chapter 3). Other countries offer call<br />

centres with multilingual operators to handle emergencies involving visitors. Information on how to<br />

contact these emergency services needs to be communicated clearly to visitors on arrival.<br />

D) Research readiness<br />

• Facilitate information exchange systems with key tourism operators<br />

Set up arrangements with local hotels, airlines and tour operators for the provision of up-to-theminute<br />

data on overnight stays, occupancy rates, pricing, etc. Establish an email or fax system<br />

capable of receiving this data from these key partners.<br />

• Monitor hospital admissions involving visitors<br />

Information on non-crisis situation hospital admissions of visitors can be used as a point of<br />

comparison to put any possible problems in the future in perspective.<br />

• Monitor crimes against visitors<br />

Statistics on crimes against visitors can help experts find gaps in security services, improve the<br />

quality of the destination and help avoid crisis-scale problems in the future. Crime statistics can also<br />

be used as background information, providing a context for crisis communication and a reference<br />

point for demonstrating a return to normalcy.<br />

II. Minimizing Damage<br />

The first 24 hours of a crisis are crucial. An ineffective and unprofessional response can exacerbate<br />

the situation for the destination, but responsible management of the crisis can enhance relations with<br />

the travel trade and facilitate the destination’s recovery process.<br />

A) Communications from the front line<br />

76 <strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> – An Authoritative Guide to Managing Crises in <strong>Tourism</strong>


• Be honest and transparent<br />

To protect your credibility, adopt a policy of full disclosure about what is known and what is not<br />

known. Deliver facts in a non-patronizing manner. Don't try to cover up mistakes, mislead or withhold<br />

critical information. The media will uncover the facts and then make you look dishonest or inept.<br />

Relate to your audience - you are not talking to experts, so communicate your message in terms and<br />

language that people can understand.<br />

• Do not impose a news blackout<br />

Failure to provide information to the media will not only deprive you of the chance to express your<br />

point of view, it will also force the media to seek alternative news sources that may provide<br />

inaccurate information which will be detrimental to the destination.<br />

• Establish a media centre<br />

The media will seek out an authoritative organization for comments and assistance immediately, so<br />

set aside an area they can use that is equipped with desks, phones and data lines. Use it for media<br />

briefings. If the crisis occurs in a remote location, set up a second media centre there with a second<br />

spokesperson who is in constant communication with the headquarters. Work with security or<br />

emergency services to help photographers and camera crews gain photo opportunities.<br />

• Act fast<br />

News travels around the world in a matter of seconds. In order to work effectively with the media, you<br />

need to respond as quickly as they do. Begin to release information once you are ready to answer<br />

the five key questions: who, what, where, when, and why? When accurate, up-to-date information is<br />

not available, say so and promise to get back to the journalists as soon as possible. Set up a<br />

timetable for regular media briefings. Provide background information on your destination.<br />

• Remember the victims<br />

The first communication about the crisis should include information about what is being done to help<br />

the victims. News about economic losses to the tourism industry comes across as insensitive where<br />

loss of life or injury is concerned. <strong>Tourism</strong> is a humane industry and needs to show its<br />

compassionate face in a crisis. As an example: when two French sunbathers were run over during a<br />

police chase recently on Miami Beach, the tourism director immediately arranged to fly in the grieving<br />

parents, he met them personally at the airport and spent the evening with the family in hospital. His<br />

personal involvement, rather than police negligence, was the focus of the story that ran in the<br />

morning newspaper.<br />

• Avoid speculation and categorical reassurances<br />

Speculation about what caused a crisis or who is to blame is not the responsibility of the tourism<br />

operators or industry. Not only would doing so create problems in your relationship with the disaster<br />

management agencies, the media thrives on conflict and will use different messages from different<br />

agencies to suggest conflict or a lack of cooperation, thus creating doubt about the efficiency of<br />

response and recovery operations. It is vital that you don't release any information or provide<br />

comment on any matter concerned with the crisis which is not strictly a tourism responsibility.<br />

• Put the crisis into context<br />

Use maps and statistics to demonstrate that the crisis is limited to a specific area or that it has only<br />

affected a portion of your country’s tourism industry. When highly publicized health problems among<br />

British visitors to the Dominican Republic created a crisis in 1997, part of the recovery strategy was<br />

to demonstrate through statistics that less than one percent of the two million British visitors in the<br />

previous year had fallen ill. This fact emphasized that hundreds of thousands of people had travelled<br />

safely to the Dominican Republic.<br />

<strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> – An Authoritative Guide to Managing Crises in <strong>Tourism</strong> 77


• Challenge untrue statements<br />

Monitor media reports and contact media outlets making mistakes in reporting immediately - before<br />

the inaccuracies can be repeated by other journalists. Be prepared with facts and offer interviews or<br />

other assistance.<br />

• Use the media spotlight to highlight positive aspects<br />

During the crisis period, you have an invaluable opportunity to brief reporters in depth on your<br />

destination. Work positive details into news releases, for example, new tourism developments,<br />

growth statistics or how important tourism is to the community. Identify human-interest stories, such<br />

as local residents helping victims.<br />

• Place information about the crisis on website<br />

The internet allows each tourism destination to become its own news channel. Communicate directly<br />

to potential visitors over your destination website, emphasizing which areas are affected by the crisis<br />

and which are unaffected, as well as describing what is being done to restore normal services and<br />

business. Be honest and factual. Update the information on a daily basis.<br />

• Network with other news sources<br />

Other organizations providing information on the crisis to the media, such as police, disaster relief,<br />

airlines, hotel associations, tour operator groups and international organizations such as the UNWTO<br />

and the Pacific Asia Travel Association (PATA) should be kept informed about your response so that<br />

they can refer to it in their communications. Let these partners know how to reach your spokesperson<br />

in order to correct any possible errors or request more information. Your media officer should liaise<br />

regularly with the media liaison officers appointed by other responding organizations.<br />

B) Hard decisions about promotion<br />

• Communicate directly with travel trade<br />

Don’t make your key partners rely on the media for information about the crisis. Provide details about<br />

the extent of damage and disruption to services, what is being done to assist victims, how disaster<br />

management or security services are working to end the crisis and what is being done to make sure it<br />

doesn’t happen again. UK tour operators have successfully used conference calls in crisis situations<br />

to link up the various people responsible for safety, promotion and tourism policy so that everyone is<br />

getting the same information at the same time. Familiarization trips organized for tour operators<br />

during or immediately following the crisis are the best way to allow them to assess the situation for<br />

themselves.<br />

• Change promotional message to address safety concerns<br />

Rather than suspending promotion, immediately change the message to reflect the current situation<br />

and address safety concerns about the destination. Advertising should express sympathy for victims<br />

and provide information about what is being done to restore normal services and business. Use ads<br />

to direct potential visitors to a hotline or website for more detailed information. After the oil tanker<br />

Prestige sank off the Spanish coast, for example, huge billboards sponsored by the regional tourism<br />

board were erected, thanking Madrid residents for their concern over the crisis.<br />

• Press ahead with promotional events and travel shows<br />

The travel trade needs to understand that your destination is stable and not going to disappear<br />

because of the crisis. The best way to demonstrate that is to press ahead with scheduled promotional<br />

events, where possible and appropriate. A crisis will undoubtedly create more attention for a<br />

destination at a trade show and allow more opportunities to communicate positive developments, and<br />

provide up-to-date information.<br />

78 <strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> – An Authoritative Guide to Managing Crises in <strong>Tourism</strong>


• Seek increases in promotional budgets<br />

A crisis usually results in more government attention for the tourism industry than it would receive<br />

under normal circumstances. Use the opportunity to seek increases in promotional budgets which will<br />

be needed to help the industry recover and stimulate visitors to return.<br />

• Initiate financial assistance and/or fiscal measures to support tourism companies<br />

Governments need to work closely with the industry in difficult times to ensure that there is not a<br />

damaging loss of product that could limit recovery. Temporary tax incentives, subsidies, reduced<br />

airport charges and free visas are some of the measures taken to encourage tour operators, airlines,<br />

and cruise companies to continue operating immediately following a crisis.<br />

• Set up a hotline<br />

If there is an emergency call centre in operation, it can become the hotline for inquiries from visitors<br />

and their families. If there is no call centre, one needs to be set up immediately with multilingual<br />

operators who have a good understanding of security issues. A sample hotline questionnaire is<br />

included in UNWTO’s Handbook on Natural Disaster Reduction in <strong>Tourism</strong> Areas. Promote the<br />

existence of the hotline in news briefings and on the destination website.<br />

• Monitor what is being done to improve safety and security<br />

Participate in inter-agency meetings to brief them on your tasks and situation and to identify the<br />

progress of response and recovery activities; keep your organization and industry informed about<br />

what disaster management or security services are doing to address issues and improve safety.<br />

• Coordinate with disaster management agencies to arrange media access<br />

Where possible, try to help organize reasonable media access to the stricken area through the<br />

disaster management agencies. Some years ago, a Caribbean country tried to restrict access to an<br />

area hit by a hurricane. CNN simply hired a helicopter to fly over and take ‘exclusive’ pictures of the<br />

devastation. The images were all the more powerful because they were ‘banned’ by authorities.<br />

• Communicate internally<br />

In the heat of a crisis, internal communication often gets overlooked. But it is important to keep all<br />

tourism staff up to date with what is being done to end it. Not only does it strengthen the tourism<br />

team, it can also prevent incorrect information being spread.<br />

C) Quick research tactics<br />

• Get to know your visitors<br />

Send out survey teams to find out who is travelling during the crisis, where they come from and why,<br />

then feed information back immediately to the promotion department.<br />

• Monitor media reports<br />

Keep track of what is being published and broadcast about your destination and feed that information<br />

back to the communications and promotion departments. Even if media monitoring is normally the<br />

responsibility of the communications department, they will be stretched too thin during a crisis and<br />

will appreciate the assistance.<br />

III. Recovering Visitor Confidence<br />

While media attention moves quickly to fresh stories, the damage wrought by a crisis can stay in the<br />

minds of potential visitors for a long time. Recovery demands a redoubling of efforts, especially in the<br />

areas of communications and promotion.<br />

<strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> – An Authoritative Guide to Managing Crises in <strong>Tourism</strong> 79


A) Image building communications<br />

• Be proactive in communications<br />

Promote what you are doing to restore tourism to normalcy. Brief journalists on your recovery plans<br />

and how long it will take for them to have effect. Provide plentiful information, including copies of<br />

speeches, editorial pieces, maps and photos. Recovery from a crisis requires extra budgetary and<br />

human resources allocated to communication.<br />

• Look for positive news<br />

Gear news items to reflect the normalcy of tourism activity, for example, the arrival of specialized tour<br />

groups or the opening of new attractions. The goal is to demonstrate ‘business as usual’ in your<br />

destination. Egypt has effectively promoted the discovery or reopening of archaeological sites as part<br />

of its recovery strategy. Promote news not directly related to tourism, such as cultural events,<br />

scientific discoveries, sporting triumphs, film shoots and shopping trends.<br />

• Increase familiarization trips for journalists<br />

Invite the press back to show them what has been achieved. Target the theme of the familiarization<br />

trip to address your particular image problem and make sure it includes plenty of contact between<br />

journalists and local residents. Concentrate on positive television coverage to counteract the harmful<br />

effect of TV images of the crisis in the minds of potential visitors. The great thing about familiarization<br />

trips is that they allow plenty of time to establish relationships with individual journalists who may then<br />

be motivated to take a special interest in your country for years to come.<br />

• Remember anniversaries<br />

An area which has suffered a major crisis will be revisited by the media on key anniversaries - 100<br />

days, six months, one year, two years, and ten years. These dates offer a good opportunity to<br />

communicate, so be prepared with materials and stories that reflect the recovery of the destination.<br />

• Anticipate legal actions<br />

People affected by international incidents will lobby for investigations, make complaints and pursue<br />

lawsuits. If the media reports something inaccurate about you, write a letter to the editor to correct<br />

the matter. If someone takes you to court, the inaccurate media report could be produced as<br />

evidence and it does no good to claim it was not true. You will need evidence that you corrected the<br />

report at the time.<br />

• Create your own news outlet on the destination website<br />

Provide an alternative to mass media news sources on your own website. Make the website as<br />

newsy as possible, taking advantage of its unlimited space to provide in-depth information. To<br />

demonstrate that your website is providing up-to-date information it needs to include the day’s date in<br />

a prominent place. It should also be updated daily with positive stories that demonstrate a return to<br />

normalcy.<br />

80 <strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> – An Authoritative Guide to Managing Crises in <strong>Tourism</strong>


B) Flexibility in promotion<br />

• Create new niche market products<br />

Packages should be targeted at the most resistant market segments such as golf, skiing, sporting<br />

events, culture, honeymoons.<br />

• Target experienced and special interest travellers<br />

Experienced travellers and repeat visitors are less likely to be deterred by a crisis. Individual<br />

travellers with a particular passion, be it scuba diving, mountain climbing, or archaeology, will go<br />

where they need to go to enjoy their hobby.<br />

• Create special price offers<br />

Rather than engaging in price wars in a crisis-stricken region, or slashing prices across the board,<br />

create special offers. Malaysia and Sri Lanka build their special offers around holiday weekends and<br />

festivals. The key is not necessarily to offer the cheapest prices, but rather to offer value-for-money.<br />

• Quickly shift promotion to most promising markets<br />

Be prepared to shift promotional campaigns to markets that promise the most resilience. Usually<br />

these are the source markets closest to home because travellers there are more familiar with your<br />

destination. But pay attention to research and beware of wasting money on markets that are not yet<br />

ready to travel. A joint Caribbean ad campaign recently launched to win back US visitors had little<br />

effect because Americans were still wary of going abroad.<br />

• Step up promotion to domestic market<br />

In larger countries, domestic tourism can make up for lack of foreign demand during the recovery<br />

period. The Bali <strong>Tourism</strong> Board began promoting to the domestic market following the terrorist<br />

bombing in order to keep hotels functioning. Persian Gulf visitors vacationed closer to home and kept<br />

hotels in Dubai, Bahrain and other Arab countries operating following the September 11 attacks.<br />

<strong>Tourism</strong> officials were surprised to discover they spent more than long-haul visitors.<br />

• Increase familiarization trips for tour operators and special events<br />

As soon as the situation permits, bring in tour operators and travel agents to see what has been done<br />

to restore the destination. Organize special events and meetings to create an opportunity to<br />

communicate with your partners in the travel trade and with the international community.<br />

• Take travel advisories seriously<br />

Establish contact with governments that have issued travel advisories against the destination.<br />

Provide a regular flow of information on the crisis, including details of the exact location of the<br />

incident, what is being done to make the area more secure and where and when it is safe for visitors<br />

to travel. Begin lobbying relevant governments and invite representatives to see the situation<br />

themselves.<br />

• Intensify cooperation<br />

A crisis brings people together in a spirit of solidarity and cooperation that is essential to a quick<br />

recovery. Improve coordination among tourism promotion boards throughout the country and<br />

redouble collaboration between public and private sectors in marketing campaigns. Also explore the<br />

possibility of multi-country regional promotions and products.<br />

<strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> – An Authoritative Guide to Managing Crises in <strong>Tourism</strong> 81


C) Security for the future<br />

• Evaluate security procedures<br />

Following a crisis, it is necessary to re-assess security systems to ensure they are adequate.<br />

Security should be as unobtrusive as possible and not deter tourism from resuming. Use new<br />

security measures to reassure visitors of the importance you place on their safety and security.<br />

• Push to improve quality of services and facilities<br />

Encourage quality through feedback of survey results on visitor perceptions, by rewarding excellence<br />

and by setting up tourism complaint services. Visitors should have somewhere to complain if services<br />

do not meet expectations. Peru’s Visitor Protection Service (SPT), which operates under the<br />

auspices of the country’s consumer protection commission, provides this service by mediating<br />

complaints, providing general visitor information, and analysing data on the nature of complaints to<br />

help identify where improvement is needed.<br />

D) Using research effectively<br />

• Survey generating markets on perceptions of your destination<br />

Research potential visitors and survey your travel partners in primary source markets for readiness to<br />

travel and for information about their perceptions or apprehensions about your destination. Providing<br />

this information to promotion officials will allow them to tailor campaigns to correct damaging<br />

impressions. In order to begin changing perceptions, it is essential to know where you stand.<br />

UNWTO Crisis Action Team<br />

Responding quickly to a tourism crisis demands solidarity, flexibility and expertise. The UNWTO has<br />

put together a Crisis Action Team made up of 11 of the world’s top experts in the area of<br />

communication, marketing and promotion, and safety and security, all of them with solid experience<br />

collaborating with UNWTO. These professionals have agreed to make themselves available to help<br />

member countries hit by a crisis and to respond to requests for urgent assistance from the<br />

Secretary-General. The kind of assistance would be at the discretion of the Secretary-General and<br />

depend on the nature of the crisis, but could include such services as: audits of crisis preparedness,<br />

developing risk management plans, communication training seminars, providing advice by phone or<br />

email, or giving emergency on-site assistance during a crisis.<br />

(Source: Kean, I: APEC International Centre for <strong>Sustainable</strong> <strong>Tourism</strong>, 2006)<br />

• Government Travel Advisories<br />

Among the leading sources of information on identifying risk for the travelling public are Travel<br />

Advisories issued by various governments around the world. For example, Australia’s Department of<br />

Foreign Affairs and Trade (DFAT) monitors current activities in more than 140 overseas destinations<br />

and provides advice to travellers through its travel information website: http://www.dfat.gov.au/travel<br />

/index.html. The advice covers a range of health and safety issues, including crime, infectious<br />

diseases, seismic activity and weather patterns. A similar service is offered to travellers by the British<br />

Foreign and Commonwealth Office (http://193.114.50.10/travel/); the US State Department<br />

(http://travel.state.gov/travel_warnings.html) and the Canadian Department of Foreign Affairs and<br />

International Trade (http://voyage.dfait-maeci.gc.ca/destinations /menu_e.htm).<br />

Foreign government monitoring is probably the best overall barometer of actual and perceived risk<br />

available to a travel destination. On 29 June 2006, for example, there were Travel Warnings issued<br />

by the US State Department for 29 countries. A Travel Warning is issued when they decide, based<br />

82 <strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> – An Authoritative Guide to Managing Crises in <strong>Tourism</strong>


on all relevant information, to recommend that Americans avoid travel to a certain country. The<br />

Australian Government’s Department of Foreign Affairs and Trade listed warnings against travel to<br />

six countries on the same date, and also recommended that travellers reconsider their need to travel<br />

to a further 14 countries.<br />

The US State Department also lists Public Announcements which are a means to disseminate<br />

information about terrorist threats and other relatively short-term and/or trans-national conditions<br />

posing significant risks to the security of American travellers. These are made any time there is a<br />

perceived threat and usually have Americans as the particular target group. In the past, Public<br />

Announcements have been issued to deal with short-term coups, bomb threats to airlines, violence<br />

by terrorists, and anniversary dates of specific terrorist events.<br />

While in a slightly different format, Australia’s DFAT issues essentially the same information as the<br />

US State Department, though it is interesting to note that at any one time some destinations may<br />

appear on one warning list but not another.<br />

Philippine Rebel<br />

Philippine terrorism has disturbed the country for at least three decades and has been carried out<br />

by different parties with different agendas. Some are the work of individuals and armed gangs to<br />

extort money and settle disputes, others are carried out by extremist groups. These include the<br />

communist New People’s Army, Abu Sayyaf and splinter groups from the Muslim separatist<br />

organizations, some are believed to have links with international terrorist groups including Jemaah<br />

Islamiah (Foreign & Commonwealth Office, 2003).<br />

Travel Advisories<br />

Due to the continuous threat of kidnappings, bombings and other violent incidents, many countries,<br />

including Korea, Canada, New Zealand, the UK and the US, have advised their citizens to avoid<br />

travelling to the southern Philippines where insurgent groups are active. Australia, the European<br />

Union and Canada have even closed their embassies in Manila temporarily because of terrorist<br />

threats.<br />

<strong>Tourism</strong> Statistics<br />

During three years of political unrest, international visitor arrivals have declined steadily in the<br />

Philippines. In 2000, total visitor arrivals were 1.99 million, a drop of 8.2% compared with 2.17<br />

million in 1999. In 2001, the number of visitors dropped further to 1.80 million which was 9.8% fewer<br />

than 2000. In terms of international tourism receipts, they have plummeted by 15.7% and 19.3%<br />

(2001) (Travel Industry Pub, 2002). The decline was due to a downturn in visits from the biggest<br />

markets, the US and Japan. Kidnappings and worries about air security after September 11 were<br />

the main causes.<br />

Although a decline continued in the first four months of 2002 (except February which had a modest<br />

3.7% rise), the situation was much improved in the remaining year despite travel advisories from<br />

several nations. Arrivals in May, June and July grew more than 10% year-on-year. August and<br />

September arrivals were up 5.7% and 15.2% respectively (Anonymous, 2002a). More visitors<br />

visited the Philippines in October despite a series of bomb attacks. Visitor arrivals posted a 36.7%<br />

growth compared to October 2001 (Anonymous, 2002b). The positive growth during these six<br />

months was the first in four years.<br />

Hotel Industry<br />

A week after the first mass kidnapping in April 2000, tour agents and hotels started receiving<br />

cancellations. The same happened after the Mindanao crisis. Although security was stepped up at<br />

<strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> – An Authoritative Guide to Managing Crises in <strong>Tourism</strong> 83


visitor spots, resort managers reported a slew of cancellations. El Nido resort in northern Palawan<br />

had about a 15% cancellation rate (Hookway, 2001). Dos Palmas Island Resort, where Abu Sayyaf<br />

abducted 20 people in May 2001, had been closed since then for almost one year.<br />

Marketing Campaigns<br />

The tourism industry is one of the flagship industries under Philippine President Gloria Macapagal-<br />

Arroyo. A series of marketing campaigns has been launched in order to attract more visitors to the<br />

Philippines.<br />

Due to the instability and travel advisories focusing on the southern Philippines, President Arroyo<br />

has outlined a viable strategy to transform North Philippines and Aurora province into the country’s<br />

next premier investment and tourism destinations. A marketing campaign labelled “WOW<br />

Philippines!” has been launched by the DOT. WOW is the master acronym for Wealth of Wonders<br />

which reflects the country’s diverse offerings in tourism attractions (Department of <strong>Tourism</strong>, n.d.).<br />

The tourism promotions blitz covers three continents, including North America, Asia and Europe.<br />

<strong>Tourism</strong> Secretary Richard Gordon led a strong Philippine contingent with no less than fifty<br />

companies participating, in each leg of the road shows. The group comprised local government<br />

officials, travel trade and major supporters such as Philippine Airlines, Singapore and WG&A Super<br />

Ferry. The road shows and sales missions aimed to intensify marketing efforts for the country’s<br />

major target markets and, in particular, to launch “Visit Philippines 2003”, which was fully endorsed<br />

by the World <strong>Tourism</strong> Organization (UNWTO) (Paez, n.d.). With its target of drawing three million<br />

visitors, VPY 2003 seeks to promote the Philippines as a unique and multifaceted business and<br />

travel destination. It also aims to instil in every Filipino a sense of pride towards the country and its<br />

people (Umali, n.d.).<br />

Performance of the Philippine tourism industry has improved significantly since 2002 despite travel<br />

advisories from various countries and the continuous threat of terrorism. One reason for the<br />

success is that President Arroyo has been addressing the terrorist threat in the Philippines. Another<br />

critical reason lies in the aggressive tourism marketing and promotions to fuel tourism growth. It<br />

shows that in spite of the extent of crisis, visitor confidence can be rebuilt by the effort of the<br />

government in addressing the problem and by an effective marketing campaign.<br />

Enhancement of Security<br />

After the kidnapping by Abu Sayyaf in May 2001, police have bolstered security around popular<br />

resorts as part of Manila’s effort to rid the archipelago of its image as an unsafe visitor destination.<br />

<strong>Tourism</strong> Secretary Richard Gordon also pledged to deploy an extra 1,000 police officers at key<br />

visitor spots (Coleman, 2002). In the wake of the Korean diplomat’s killing in June 2002, police set<br />

up a special force of 1,700 men to protect embassies and other key foreign establishments in<br />

Manila (Madhur, 2002). Both private and public sectors in the Philippines undertook heightened<br />

security measures to protect visitors. For example, Dos Palmas Island Resort, where a mass<br />

kidnapping happened in May 2001, added security nets to control sea access to the resort. The<br />

Philippines government also expanded security measures in major airports and seaports to assure<br />

the safety of foreigners in the country.<br />

Government Policy and Actions against Terrorist Group<br />

The Philippine government policy towards abduction is that there will be no negotiation for any kind<br />

of ransom. However, the government has allowed the payment of ransom from members of<br />

hostages’ families.<br />

There has been constant military pressure on Abu Sayyaf since August 2000. In September,<br />

President Estrada ordered the Armed Forces of the Philippines (AFP) to commit over 1,500 troops<br />

into Jolo to conduct operations against Abu Sayyaf units that had taken foreign hostages in<br />

Malaysia. In the following year, President Arroyo ordered the AFP to deploy as many as 4,500<br />

troops into Basilan after the hostage-taking on Palawan. The government also offered a $2 million<br />

84 <strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> – An Authoritative Guide to Managing Crises in <strong>Tourism</strong>


ounty for any information leading to the capture of Abu Sayyaf leaders and followers involved in<br />

the kidnapping (Hookway, 2001). AFP operations have apparently reduced Abu Sayyaf strength<br />

from the level of over 1000 in early 2000 to below 100 on Basilan and 500 on Jolo by December<br />

2001 (Niksch, 2003).<br />

US Involvement in Combating Terrorism<br />

Beginning in October 2001, The United States sent groups of military observers to Mindanao to<br />

assess AFP operations against Abu Sayyaf, render advice and examine AFP equipment needs.<br />

President Bush extended $93 million aid to the Philippines when President Arroyo visited<br />

Washington in 2001. However, President Arroyo insisted that the US military role should be<br />

advisory and that the AFP would retain full operational responsibility. By late December 2001, the<br />

AFP on Mindanao began to receive quantities of US military equipment (Niksch, 2003). Although<br />

terrorism remained active afterwards, President Arroyo reiterated that US troops would not be<br />

allowed to fight Muslim rebels in the southern Philippines (Anonymous, 2003).<br />

(Source: Based upon material provided by the Hong Kong Polytechnic University)<br />

Government travel advisories are clearly attaining a higher profile in the decision making of travellers<br />

and travel professionals on the suitability of tourism destinations. Consequently, there is a growing<br />

need to ensure that the information and warnings are credible, responsible, and based on a sober<br />

assessment of security risks, and that they are as free of political or cultural considerations as<br />

possible.<br />

From early 2003 the Australian travel industry sought and undertook a greater dialogue with DFAT to<br />

ensure that the tourism industry’s perspective was given due consideration in the formulation of<br />

advisories. DFAT, to its credit, was responsive to tourism industry overtures. As a result of extended<br />

negotiations conducted by representatives of Australian travel industry companies and associations<br />

under the auspices of Australian Federation of Travel Agents (AFTA), the Australian travel industry<br />

and DFAT (2003b) released the Charter for Safe Travel in June 2003.<br />

Charter for Safe Travel<br />

The Charter commits the Australian travel industry to disseminate Australian government travel<br />

advisories to travellers but it also commits the Australian government to maintaining a consultative<br />

dialogue with the travel industry and to include travel agents, airlines and tour operators as credible<br />

sources in determining the safety of destinations. The Australian Charter for Safe Travel is a model<br />

that tourism industries of many countries can adapt. It has the potential to be a precursor to the<br />

travel industry playing a global role in helping all governments determine travel advisories.<br />

Participating partners receive a certificate representing their commitment to the Charter’s principles.<br />

(Source: Courtesy of the Department of Foreign Affairs and Trade, Australia)<br />

<strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> – An Authoritative Guide to Managing Crises in <strong>Tourism</strong> 85


References<br />

Anonymous, 2002a, March 28, ‘Travel advisory – Philippines’, Travelpress, [online]<br />

http://global.factiva.com, accessed 14 August 2003<br />

Anonymous, 2002b, ‘November 8, <strong>Tourism</strong> up in Philippines in Oct Despite Bombings’, Reuters<br />

News. [online] http://global.factiva.com, accessed 14 August 2003<br />

Anonymous, 2003, March 5, ‘Philippine Police Question 5 for Airport Bombing; US Combat Role<br />

Ruled Out’, The Canadian Press, [online] http://global.factiva.com, accessed 14 August 2003<br />

Coleman, Z. 2002, February 6, ‘<strong>Tourism</strong> Industry in the Philippines Faces Tough Times. The Asian<br />

Wall Street Journal’, [online] http://global.factiva.com, accessed 9 July 2003<br />

Department of <strong>Tourism</strong>. (n.d.). ‘WTO fuels RP Plans for Visit Philippines 2003’, [online]<br />

www.wowphilippines.com.ph, accessed 30 August 2003<br />

Foreign & Commonwealth Office. 2003, August 20, ‘Country Advice – Philippines’, [online]<br />

www.fco.gov.uk, accessed 26 August 26 2003<br />

Hookway, J. 2001, May 29, ‘Kidnappers Stage Repeat Performance – Philippine Rebel Group Says<br />

Hostages are in Sulu Islands’. The Asian Wall Street Journal. [online] http://global.factiva.com,<br />

accessed 14 August 2003<br />

Madhur, S. (2002, July 20), ‘Battling a Violent Image. Townsville Bulletin’, [<strong>Online</strong>] Available:<br />

http://global.factiva.com, accessed 9 July 2003<br />

Niksch, L. 2003, ‘Abu Sayyaf: Target of Philippine-U.S. anti-terrorism cooperation’. In H.S. Calit (Ed.).<br />

The Philippines: Current Issues and Historical Background (pp. 3-10). New York: Nova Science<br />

Publishers.<br />

Paez, P.A.V. (n.d.), ‘Sec. Gordon on “Visit Philippines 2003" ‘Roadshow; Points to Latest<br />

Encouraging Trend in Philippine <strong>Tourism</strong>’, [online] www.wowphilippines.com.ph, accessed 30 August<br />

2003<br />

Travel Industry Pub. 2002, ‘Travel Industry World Yearbook – The Big Picture’. New York: Travel<br />

Industry Publishing Company.<br />

Umali, T.G. (n.d.), ‘Strong Support Expected for TRICON in Region I and CAR’, [online]<br />

www.wowphilippines.com.ph, accessed 28 August 2003<br />

86 <strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> – An Authoritative Guide to Managing Crises in <strong>Tourism</strong>


APPENDIX A: GLOSSARY OF TERMS<br />

The following definitions used throughout the guide are from AS/NZS 4360:2004 <strong>Risk</strong> <strong>Management</strong>,<br />

and Emergency <strong>Management</strong> Australia’s Emergency <strong>Risk</strong> <strong>Management</strong> Applications Guide, Second<br />

Edition, 2004.<br />

Community<br />

A group of people with a commonality of association and generally defined by location, shared<br />

experience, or function.<br />

Consequences<br />

Outcome or impact of an event.<br />

Control<br />

An existing process, policy device, practice or other action that acts to minimize negative risk to<br />

enhance positive opportunities.<br />

Elements at <strong>Risk</strong><br />

The population, buildings and civil engineering works, economic activities, public services and<br />

infrastructure etc, exposed to sources of risk.<br />

Emergency<br />

An event, actual or imminent, which endangers or threatens to endanger life, property or the<br />

environment, and which requires a significant and coordinated response.<br />

Emergency risk management<br />

A systematic process that produces a range of measures contributing to the well-being of<br />

communities and the environment.<br />

Environment<br />

Conditions or influences comprising built, physical and social elements which surround or interact<br />

with the community.<br />

Hazard<br />

A source of potential harm.<br />

Lifeline<br />

A system or network that provides services on which the well-being of the community depends.<br />

Likelihood<br />

Used as a general description of the probability or frequency.<br />

Monitor<br />

To check, supervise, observe critically, or record the progress of an activity, action or system on a<br />

regular basis in order to identify change from the performance level required or expected.<br />

Preparedness<br />

Arrangements to ensure that, should an emergency occur, all those resources and services which<br />

are needed to cope with the effects can be efficiently mobilized and deployed.<br />

Prevention<br />

Regulatory and physical measures to ensure that emergencies are eliminated or their effects<br />

mitigated.<br />

<strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> – An Authoritative Guide to Managing Crises in <strong>Tourism</strong> 87


Recovery<br />

The coordinated process of supporting emergency-affected communities in the reconstruction of the<br />

physical infrastructure and restoration of emotional, social, economic and physical well-being.<br />

Residual risk<br />

The risk remaining after implementation of risk treatment.<br />

Response<br />

Actions taken in anticipation of, during and immediately after, an emergency to ensure its effects are<br />

minimized and that people affected are given immediate relief and support.<br />

<strong>Risk</strong><br />

The chance of something happening that will have an impact upon objectives.<br />

<strong>Risk</strong> analysis<br />

Systematic process to understand the nature of and reduce the level of risk.<br />

<strong>Risk</strong> assessment<br />

The overall process used of risk identification, risk analysis, and risk evaluation.<br />

<strong>Risk</strong> evaluation<br />

Process of comparing the level of risk against risk criteria.<br />

<strong>Risk</strong> criteria<br />

Terms of reference by which the significance of risk is assessed.<br />

<strong>Risk</strong> management<br />

The culture, processes and structures that are directed towards realizing potential opportunities<br />

whilst managing adverse effects.<br />

<strong>Risk</strong> management process<br />

The systematic application of management policies, procedures and practices to the tasks of<br />

communicating, establishing the context, identifying, analysing, evaluating, treating, monitoring and<br />

reviewing risk.<br />

<strong>Risk</strong> register<br />

A listing of risk statements describing sources of risk and elements at risk with assigned<br />

consequences, likelihoods and levels of risk.<br />

<strong>Risk</strong> treatment<br />

Process of selection and implementation of measures to modify risk.<br />

<strong>Risk</strong> treatment options<br />

Measures which modify the characteristics of hazards, communities or environments.<br />

Sources of risk<br />

Sources of potential harm.<br />

Stakeholders<br />

Those people and organizations who may affect, be affected by or perceive themselves to be<br />

affected by, a decision, activity or risk.<br />

Susceptibility<br />

The potential to be affected by loss.<br />

88 <strong>Tourism</strong> <strong>Risk</strong> <strong>Management</strong> – An Authoritative Guide to Managing Crises in <strong>Tourism</strong>


Australia<br />

Brunei Darussalam<br />

Canada<br />

Chile<br />

People’s Republic of China<br />

Hong Kong China<br />

Indonesia<br />

APEC Members<br />

Japan<br />

Republic of Korea<br />

Malaysia<br />

Mexico<br />

New Zealand<br />

Papua New Guinea<br />

Peru<br />

Philippines<br />

Russia<br />

Singapore<br />

Chinese Taipei<br />

Thailand<br />

United States of America<br />

Viet Nam<br />

AICST was established by the <strong>Tourism</strong> Ministers of the 21 APEC Economies and the APEC <strong>Tourism</strong> Working Group<br />

to provide information and assistance to APEC Economies and tourism destinations to improve tourism sustainability<br />

throughout the region.<br />

AICST aims to:<br />

• Contribute to improved planning and management of tourism • Increase capabilities and capacities<br />

• Assist better policy development by governments<br />

• Foster improved tourism education and training<br />

Prepared by the APEC International Centre for <strong>Sustainable</strong> <strong>Tourism</strong><br />

PO Box 1430, Toowong, Queensland, Australia 4066 Email: info@aicst.org<br />

For the Asia-Pacific Economic Cooperation Secretariat, 35 Heng Mui Keng Terrace Singapore 119616<br />

Tel: (65) 6775 6012 Fax: (65) 6775 6013 Email: info@apec.org Website: www.apec.org<br />

© 2006 APEC Secretariat APEC Report No: 206-TO-03.1 ISBN981-05-6732-4

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